STOCK MARKET NEWS: Oil up $2 a barrel as OPEC+ considers October production quotas, gas, diesel and crypto lower

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Symbol Price To change %To change
USO $71.43 0.48 0.68
CLC $157.85 2.31 1.49
XOM $95.59 1.72 1.83

Oil prices rose more than $2 a barrel on Monday, extending gains as investors considered possible moves by OPEC+ producers to cut output and support prices at a meeting later in the week. daytime.

Brent crude oil futures had risen $2.42, or 2.6%, to $95.44 a barrel at 0641 GMT after gaining 0.7% on Friday.

U.S. West Texas Intermediate crude was at $88.92 a barrel, up $2.05, or 2.4%, after rising 0.3% in the previous session.

US markets are closed for a holiday Monday.

When they meet later Monday, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, could decide to maintain current production levels or even cut production to support prices, despite supplies remaining tight.

“OPEC+ will most likely keep production tight enough to keep the price of oil down amid the demand disruptions that have been triggered by the new shutdowns in parts of China,” said CMC Markets analyst Tina Teng.

When they meet later Monday, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, could decide to maintain current production levels or even cut production to support prices, despite supplies remaining tight.

“OPEC+ will most likely keep production tight enough to keep the price of oil down amid the demand disruptions that have been triggered by the new shutdowns in parts of China,” said CMC Markets analyst Tina Teng.

Russia, the world’s second-largest oil producer and key member of OPEC+, does not support a production cut at this time, and the group is likely to keep production steady at its Monday meeting, The Wall Street Journal reported Sunday. , citing unidentified sources. people familiar with the subject.

“While we expect the group to keep production unchanged, the rhetoric may be bullish as it seeks to halt the recent price slump,” ANZ analysts said in a note.

Despite the possibility of production cuts, CMC’s Teng pointed out that downside risks also remain, citing Iran’s potential exports amid its ongoing nuclear talks and recession fears as two of those. risks.

Oil prices have tumbled over the past three months, after hitting multi-year highs in March, on concerns that rising interest rates and COVID-19 curbs in parts of China, the top importer world of crude oil, slow global economic growth and dampen demand for oil.

Lockdown measures in southern China’s tech hub Shenzhen, however, eased on Monday, with new infections showing signs of stabilizing, though the city remains under high vigilance.

Negotiations to revive the 2015 nuclear deal between the West and Iran have dragged on, though a deal could allow Tehran to increase exports and improve global supplies.

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