Oil prices rise

Brent crude oil traded above $80 a barrel following a four-day losing streak that caused futures contracts to lose 3 percent of their value. U.S. crude oil was near $75. Delegates stated that Saudi Arabia, the de facto leader of OPEC+, has asked other members to reduce production quotas to support markets, despite resistance from some members.

"One should be careful not to underestimate the resolve of the Saudis. However, it will be difficult for them to get support from all member states," said Vishnu Varathan, head of Asia economics and strategy at Mizuho Bank.

Crude oil has fallen by about one-fifth since the end of September due to an oversupply and concerns about the global economic situation, putting pressure on the 23-nation alliance to intervene at its online meeting on Thursday. The International Energy Agency warned earlier this month that markets would return to a surplus next year due to a dramatic slowdown in demand growth.

A Bloomberg survey of investors and analysts late last week showed that about half of the participants expect OPEC+ to take further measures to tighten the market. According to Eurasia Group analysts led by Raad Alkadiri, if the alliance does not announce an additional cut of about 1 million barrels per day on top of Saudi Arabia's restrictions, prices could fall to as low as $70 per barrel.

News Source: 12punto