On Tuesday, oil prices experienced an upturn, ending a consecutive decline over several sessions in anticipation of a pivotal OPEC+ meeting.
The meeting is widely anticipated to result in an increase and extension of oil production cuts, given concerns about sustained excess supply relative to demand.
At 0152 GMT, Brent Crude futures exhibited a gain of 45 cents, equivalent to a 0.6% increase, reaching $80.43 per barrel.
This positive movement is poised to break a four-day losing streak. Concurrently, U.S. West Texas Intermediate (WTI) crude futures saw an upward shift of 43 cents, also reflecting a 0.6% rise, reaching $75.28 per barrel, following a three-session decline.
OPEC+, a coalition comprising the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, is scheduled to convene for an online ministerial meeting on November 30.
The primary agenda of this meeting is to deliberate on production targets for the year 2024.
According to ANZ Research's client note on Tuesday, crude oil prices surged early on the back of reports indicating OPEC's inclination to reduce its output quotas.
Last week, OPEC+'s decision to defer the meeting, citing disagreements over production targets for African producers, led to a notable drop in oil prices.
However, recent developments suggest that the group is moving closer to a compromise, potentially paving the way for Saudi Arabia, the de facto leader, to secure consensus on substantial oil production cuts.
Analysts attribute downward pressure on oil prices to robust production from non-OPEC nations, notably the United States.
Addressing this context, ANZ highlighted that Saudi Arabia might find reassurance in the continuous decline of U.S. petrol prices over the past 60 days.
This could potentially mitigate U.S. resistance to any measures aimed at tightening oil markets and supporting prices.
