Oil prices rose yesterday, rebounding from recent losses, on reports that the ally of the Organisation of Petroleum Exporting Countries (OPEC+) could adjust plans to raise oil production if large consuming countries release crude from their reserves or if the coronavirus pandemic dampens demand.
Brent crude futures rose 97 cents or 1.2 per cent to $79.86 a barrel. WTI crude futures rose 89 cents, or 1.2per cent, to $76.83 a barrel.
Prices of the Brent and United States’ West Texas Intermediate (WTI) crude benchmarks fell more than $1 in early trading, hitting their lowest levels since October 1.
Japanese and Indian officials are working on ways to release national reserves of crude oil in tandem with the United States and other major economies to dampen prices, seven government sources with knowledge of the plans told Reuters.
The request came after the United States’ government was unable to persuade OPEC and allies including Russia, known as OPEC+, to pump more oil with major producers arguing the world was not short of crude.
The producer group agreed this month to stick to plans to raise oil output by 400,000 barrels per day (bpd) from December.
Oil prices rose after Bloomberg News reported that OPEC+ may alter plans to keep boosting production, citing delegates. Reuters has not verified the report.