Oil price rises before OPEC+ meeting

Oil prices have been rising since morning Wednesday with the hope of reaching new OPEC+ agreement on an output cut.

Report informs citing RIA Novosti that this is proved by the results of deals reached.

As of 9:00 (GMT +4), the Brent crude price rose 2.51% to $32.67 a barrel, WTI crude went up 5.76% to $24.99.

The market participants are expecting OPEC+ meeting, which will be held on Friday, to be more successful than the meeting held in early March. OPEC+ is planning to discuss possible output cuts to stabilize the situation in the market.

Such discussions had been unsuccessful in early March. There was no consensus on neither Russia’s proposal to extend OPEC+ deal nor Saudi Arabia’s idea to ‘deepen’ the output cut by more 1.5 million barrels a day. Consequently, the agreement became invalid on April 1.

One of the factors causing optimism before OPEC+ meeting is a statistics of the American Petroleum Institute (API). So, the figures show that the U.S. oil reserves rose to 11.9 million barrels in the past week. Official information by the U.S. Department of Energy will be published in the evening. The analysts think the Department will say that the reserves increased by 9.2 million barrels.