Oil rebounded on Tuesday after falling to more than 11-month lows in the previous session, as investors weighed a potential output adjustment from the major oil producers, who are set to have a key meeting this week.
Brent crude futures advanced $1.81, or 2.2%, and traded at $85.00 a barrel at 0446 GMT. U.S. West Texas Intermediate (WTI) crude futures rose $1.37, or 1.8%, to $78.61 a barrel.
settled down 0.5% the previous day, having slumped more than 3% to $80.61 earlier in the session to its lowest since Jan. 4. WTI settled up 1.3% on Monday after touching its lowest since December 2021.
Although the market is already correcting itself after a sharp drop, word that the OPEC+ would seriously consider additional production cuts at the upcoming meetings further fuelled the price jump, analysts from Haitong Futures said in a note.
“Although this is merely a guess … not the official statement from the OPEC, it still reflects the near-term market sentiment and is likely to be the turning point of the oil prices,” they said.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, known as OPEC+, are set to hold a meeting on Dec. 4.