Oil up rises as output cut considered by OPEC+

Oil prices rose on Thursday for a second day, briefly touching $90 per barrel as leading OPEC+ members discussed an output cut to become in force as of next week, but gains moderated on the stronger dollar and weak economic expectations.

Brent crude futures for November rose 18 cents to $89.50 a barrel by 11:13 a.m. EST (1513 GMT), at the time of writing Brent is trading at $88.10 after briefly rising above $90 a barrel. WTI crude futures for November rose 31 cents to $82.47 earlier on the day, but is trading at $82.63 at the time of writing.

Leading OPEC+ members have begun discussions about an oil output cut when they meet on Oct. 5, and one OPEC source said a cut looks likely, but gave no indication of volumes.

Russia could propose that OPEC+ reduce oil output by about 1 million barrels per day (bpd). About 157,706 bpd of oil production was shut in the Gulf of Mexico as of Wednesday following Hurricane Ian, according to federal data. Production is expected to return in coming days.

Both crude benchmarks rebounded from nine-month lows early this week, buoyed by a temporary dive in the dollar index and a larger than expected US fuel inventory drawdown.