Oil Climbs Ahead of OPEC+ Review of Easing Production Curbs

Shafaq news/ Oil edged higher above $42 a barrel in New York ahead of an OPEC+ gathering this week to assess its supply deal as countries struggle to contain the virus that’s hurt economies and fuel demand globally.

The Joint Ministerial Monitoring Committee that reviews the OPEC+ agreement is poised for a planned meeting on Wednesday, with the group starting to return some crude supply to the market this month following deep reductions.

 Meanwhile, the U.S. seized four tankers carrying Iranian gasoline bound for Venezuela in an unprecedented move that carries the potential to destabilize global oil shipments if Iran retaliates.

Oil has been slowly pushing higher after being stuck near $40 a barrel since early June following a rapid rebound from a plunge below zero. However, the market is still facing headwinds including rising virus infections and fraying U.S.-China tensions, which may derail a nascent demand recovery.

OPEC+ is planning to return about 1.5 million barrels a day this month after trimming roughly 10% of global supply following a crash in demand due to the outbreak.

By 5:00 GMT, West Texas Intermediate for September delivery rose 1.05% to $ 42.46 a barrel on the New York Mercantile Exchange after losing 1.6% in the previous two sessions.

Brent crude LCOc1 rose 0.89% to $ 45.19 after falling 0.4% on Friday.

Oil exports from alliance member Oman fell 14% in July from a month earlier.

It’s noteworthy that According to a statement issued by the Ministry of Oil and Gas, Iraq has made its commitment to date to implement deep cuts in production