Oil reverses losses to gain 2% as OPEC urges compliance with production cuts
Oil prices rose about 2% on Thursday, turning positive as OPEC and its allies said the producer group would crack down on countries that failed to comply with output cuts and planned to hold an extraordinary meeting in October if oil markets weaken further.
Brent oil futures extended their gains to trade up 2.3% at $43.21 a barrel. U.S. crude futures settled 81 cents, or 2%, higher at $40.97 per barrel. Both contracts rose more than 4% on Wednesday.
OPEC and non-OPEC allies urge ‘full conformity’ with production cuts as oil prices falter
A group of some of the world’s most powerful oil-producing nations on Thursday met to review production policy, amid a faltering recovery from the pandemic-driven rout and a bleak outlook for energy demand.
During the meeting between OPEC and non-OPEC allies, sometimes referred to as OPEC+, ongoing flexibility was emphasized as oil prices continue to trade at depressed levels.
OPEC+ did not announce additional output cuts at Thursday’s meeting, which was in-line with analyst expectations.
Oil prices have dropped more than 35% since the start of the year.
Reference: CNBC
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