Oil Rising on Hopes of Restricting OPEC Supply

Oil prices rose on Monday, November 16, offsetting some of the previous session’s losses to support hopes that OPEC + will maintain the current production restrictions, overshadowing concerns about the decline in fuel demand due to the growing infection with the Coronavirus and the increase in production in Libya.

Prices were also supported by figures showing the rebound of the second and third largest economies in the world, China and Japan, and data that Chinese refiners treated more crude on a daily basis in October.

By 07:23 GMT, Brent crude for January delivery rose 54 cents, equivalent to 1.3%, to reach $ 43.32 a barrel, while US West Texas Intermediate crude increased 63 cents, or 1.6%, to record $ 40.76 a barrel.

Both contracts rose more than 8% last week amid hopes for a vaccine for the Covid-19 disease and for the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, to keep production low next year to support prices.