Oil prices jump over $2 ahead of OPEC+ meeting

An oil pump jack pumps oil in a field near Calgary, Alberta, Canada, July 21, 2014. REUTERS/Todd Korol/File Photo

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  • Brent and WTI contracts rise more than 2%
  • OPEC+ to discuss production cut among other options, sources say
  • Iranian crude exports and a possible recession are downside risks

LONDON, Sept 5 (Reuters) – Oil prices rose more than $2 a barrel on Monday, extending gains as investors considered possible moves by OPEC+ producers to cut output and support prices during of a meeting later in the day.

Brent crude oil futures were up $2.43, or 2.6%, at $95.45 a barrel as of 0850 GMT after rising 0.7% on Friday. U.S. West Texas Intermediate crude rose $2.21, or 2.5%, to $89.08 after gaining 0.3% in the previous session.

US markets are closed for a holiday Monday.

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At their meeting later Monday, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, will discuss among other options oil production cuts of 100,000 barrels per day. , group sources told Reuters. Read more

“The group is expected to leave production targets unchanged, but it is likely that a cut will at least be discussed which, if followed, would create more volatility and uncertainty at a time of considerable unease,” he said. said Craig Erlam, senior market analyst at OANDA.

Russia, the world’s second-largest oil producer and a key OPEC+ member, does not support a production cut at this time and the producer group is expected to decide to keep production stable, The Wall Street Journal reported on Sunday, citing anonymous sources. Read more

Oil prices have fallen in the past three months from multi-year highs reached in March, under pressure from concerns that interest rate hikes and COVID-19 restrictions in parts of China could slow growth. global economic growth and oil demand. Read more

Lockdown measures in southern China’s tech hub Shenzhen eased on Monday as new infections showed signs of leveling off, though the city remains under high vigilance. Read more

Meanwhile, talks to revive the 2015 nuclear deal between the West and Iran, potentially providing increased supply of Iranian crude returning to the market, have encountered a new problem.

The White House on Friday rejected Iran’s call for a deal to be tied to the closure of investigations by the UN nuclear watchdog, a Western diplomat said. Read more

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Reporting by Noah Browning Additional reporting by Florence Tan in Singapore and Emily Chow in Kuala Lumpur Editing by David Goodman

Our standards: The Thomson Reuters Trust Principles.

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