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Oil Jumps More Than $3 as OPEC+ Weighs Output Cut

Oil Jumps More Than $3 as OPEC+ Weighs Output Cut

Monday, 3 October, 2022 - 11:30
A Coast Guard ship patrols around the Sleipner A platform during Norway's Prime Minister's visit in Stavanger, Norway, 01 October 2022. (EPA)

Oil prices jumped by more than $3 on Monday as OPEC+ considers reducing output by more than 1 million barrels per day (bpd) to buttress prices with what would be its biggest cut since the start of the COVID-19 pandemic.

Brent crude futures rebounded $3.37, or 4%, to $88.51 a barrel by 1100 GMT. US West Texas Intermediate crude was up 4.1%, or $3.29, at $82.78.

Oil prices have tumbled for four straight months since June, as COVID-19 lockdowns in top energy consumer China hurt demand while rising interest rates and a surging US dollar weighed on global financial markets.

To support prices, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, is considering an output cut of more than 1 million bpd ahead of Wednesday's meeting, OPEC+ sources have told Reuters.

That figure does not include additional voluntary cuts by individual members, one OPEC source added.

If agreed, it will be the group's second consecutive monthly cut after reducing output by 100,000 bpd last month.

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