Oil is Rising With Potential Supply Cuts to Offset Weak Demand

Oil prices rose Thursday, November 12th, taking crude gains since the start of this week to more than 10%, thanks to growing hopes that major producers around the world will be reluctant to increase supplies, while the increase in cases of Covid-19 undermines demand for fuel.

By 07:32 GMT, US West Texas Intermediate crude futures rose 17 cents, or 0.4%, to $ 41.62 a barrel, while Brent crude futures rose seven cents, or about 0.2%, to $ 43.87 a barrel.

The Algerian Energy Minister said on Wednesday that the OPEC+ group, which includes OPEC and other producers, including Russia, may extend the current production cuts of 7.7 million barrels per day until next year or increase them if necessary.

Analysts say the weak expectations are putting pressure on OPEC + to refrain from increasing supplies by 2 million barrels per day from January, with the market now considering delaying the increase.

Currently, demand for fuel is facing pressure with the increase in coronavirus cases in the United States, Europe, and South America. As a result, OPEC said demand will recover more slowly in 2021 than previously expected.