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Oil prices settle higher on tighter supply optimism ahead OPEC+ decision


Oil prices settle higher on tighter supply optimism ahead OPEC+ decision By Investing.com

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AuthorYasin EbrahimCommodities

Published Feb 29, 2024 09:08PM ET
Updated Mar 01, 2024 03:36PM ET

© Reuters.

Investing.com– Oil prices settled at near four-month highs Friday, on growing optimism about tighter global supplies as focus shifts to potential announcement by OPEC+ next week.    

By 14:30 ET (19.30 GMT), the U.S. crude futures settled 2.2% higher at $79.97 a barrel after briefly topping $80 a barrel intraday for the first time since Nov. 7, 2022. The Brent contract climbed 2.1% to $83.94 a barrel. Both contracts are on a two-month win streak. 

OPEC+ decision eyed amid tighter supply hopes 

OPEC and its allies, or OPEC+, are reportedly expected to make a decision on whether to extend production cuts next week, Reuters reported, citing unnamed sources.

The rolling over of production curbs — of about 2.2 million barrels per day that was agreed in November — into the second quarter has lifted optimism about tighter global crude supply at a time when many are concerned about rising non-OPEC output and China-fueled demand weakness.       

Rig counts expand to highest since September

The number of oil rigs operating in the U.S. rose by 3 to 506, the highest since September, as domestic refiners slowly step-up activity after weather-related disruptions.

Still, rig counts continue to trend below levels requited “required to maintain current production,” ANZ Research said in a recent note.

Domestic production fell to 13.315 million barrels per day in December, from November’s record 13.314 million barrels per day.

(Peter Nurse, Ambar Warrick contributed to this article.)

Oil prices settle higher on tighter supply optimism ahead OPEC+ decision

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