Oil edged higher ahead of a key OPEC+ meeting that may see some supply returned to a fast-tightening market.
Futures in New York flipped between gains and losses on Monday, after rising as much as 2.3%. The alliance gathers on Thursday and is expected to loosen the taps after prices got off to their best ever start to a year. But it’s unclear how robustly the group will act, with the Saudi Arabian energy minister calling for producers to remain “extremely cautious.”
The market continues to face risks in the near term. China’s Unipec was re-offering cargoes of April Angolan crude amid weaker sales. Diesel demand in India was also down versus a year earlier amid record pump prices in the country. Both point to a limit on some of the recent firmness seen within the oil market.
“OPEC potentially putting more supply on the market could undercut some of the strength” prices have experienced lately, said John Kilduff, a partner at Again Capital LLC. The backdrop for market is “mostly supportive, but this additional slug of OPEC supply if it were to develop is definitely a limiting factor.”
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