Oil Gaining as OPEC+ Meets to Decide on Production Policy

Oil prices rose on Thursday, April 1, to offset some of the losses incurred in the previous session, as hopes grew that OPEC and its allies, who will meet later today, will decide to continue curbing production in the face of a new rise in Covid-19 infections in some areas.

Brent crude for delivery in June rose 71 cents, or 1.1%, to $63.45, after falling 2.2% overnight. US crude rose 71 cents, or 1.2%, to $59.87 a barrel, after falling 2.3% on Wednesday.

Ministers from the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia and Kazakhstan, a group is known as OPEC+, are meeting later today to consider options, including an extension of the production cut and a gradual increase in it.

OPEC+ is currently curbing production by more than seven million barrels per day to support prices and reduce excess supplies. Saudi Arabia is adding to those cuts an additional million barrels per day.