Oil prices have edged up on increased expectations that the Organization of the Petroleum Exporting Countries (OPEC) and its allies will agree on production cuts during their meeting this week.
Brent futures edged up by $0.17 to $61.09 a barrel, while US West Texas Intermediate (WTI) crude increased $0.25 at $56.21 a barrel, reported Reuters.
The news agency cited sources with knowledge of the matter saying that the OPEC and its allies, known as OPEC+ group, are expected to extend existing output cuts until next June in a meeting to be held in Vienna.
As part of this, the existing supply cut of 1.2 million barrels per day (bpd) is planned to be increased by a further 400,000bpd.
The sources further added that Saudi Arabia is planning to deliver a positive surprise to the market before Saudi Aramco launches IPO.
In a research note, Goldman Sachs said: “We believe the global oil supply-demand balance requires an extension of the current OPEC+ cuts.”
CMC Markets Singapore market analyst Margaret Yang said: “(The) oil price is little moved today, suggesting that traders are sceptical about the additional 400,000bpd cut on top of the extension of (the) current production cut agreement.”
In addition to discouraging US economic data, concerns with regard to the world’s two biggest economies, the US and China’s inability to reach an interim deal to end the 17-month old trade dispute also weighed on prices.
US President Donald Trump senior adviser said that the deal will still be possible before the end of this year, noting that the first phase of the agreement was being put to paper, despite dragged trade talks for weeks.