Brent jumps about $4 as OPEC+ studies the largest production cut since 2020

Oil prices jumped by nearly $4 on Monday, October 3, as the OPEC+ group considers cutting production by more than one million barrels per day, what would be the largest cut since the Corona pandemic, in an attempt to support the market.

Brent crude futures rose $3.64, or 4.3%, to $88.78 a barrel, and US West Texas Intermediate crude also rose 4.8%, or $3.85, to $83.33 a barrel.

Oil prices have fallen for four consecutive months since June after the COVID-19 shutdown in China, the largest energy consumer, hit demand while higher interest rates and a stronger US dollar weighed on global financial markets.

The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, are considering cutting production by more than 1 million barrels per day before Wednesday’s meeting to support prices, sources in the…
OPEC + told Reuters.

This will be the second consecutive monthly cut by OPEC + after it cut production by 100,000 barrels per day last month.

The dollar index fell today, Monday, for the fourth consecutive day, after touching its highest level in two decades. The decline would increase the demand for oil and support prices.