With investors anticipating possible moves by “OPEC +” group producers in a meeting later today, oil prices jumped more than one dollar a barrel.
Brent crude futures rose $1.43, or 1.5 percent, to $94.45 a barrel, after rising 0.7 percent on Friday.
Meanwhile, US West Texas Intermediate crude recorded $88.12 a barrel, up $1.25, or 1.4 percent, after rising 0.3 percent in the previous session.
“Reuters” indicated that US markets are closed for a public holiday, today, Monday.
But today OPEC+ will meet to take a decision to either maintain current production levels or reduce them to support prices despite the continued low supply.
The Wall Street newspaper quoted informed sources as saying that Russia does not support reducing oil production at the present time, and the “OPEC+” alliance is likely to maintain the production rate constant when it meets today, as Moscow is maneuvering to thwart Western attempts to limit its oil revenues to dry up the sources of oil financing the invasion of Ukraine.
The Wall Street Journal reported that Russia is concerned that production cuts could signal that crude oil supply is outpacing global demand – a situation that would reduce its leverage with oil-consuming nations that still buy their oil at deep discounts.
The sources added that although Russia has benefited from higher oil prices since the Ukrainian invasion, Moscow is more concerned about maintaining influence in negotiations with Asian buyers who bought its crude after Europeans and the United States began boycotting it this year.
It is noteworthy that last week, the Group of Seven countries launched a plan to ban the insurance and financing of shipments of Russian oil and petroleum products unless they are sold under a specified price ceiling. Russia responded by threatening to cut off supplies to countries that participate in the price cap scheme.