Oil prices edged higher on Tuesday as OPEC, Russia and their allies will stick to plans to raise output slightly from May 1, suggesting it does not see a lasting impact on demand from India’s coronavirus crisis.
OPEC+, as the producer group is known, has also ditched plans to hold a full ministerial meeting on Wednesday, sources said. A technical meeting on Monday had voiced concern about surging COVID-19 cases but kept its oil demand forecast unchanged.
The panel decided to stick to policies broadly agreed at a previous April 1 meeting of OPEC+, Russian Deputy Prime Minister Alexander Novak said after the talks.
Brent crude ended the session up 77 cents, or 1.2%, at $66.42 a barrel after climbing to a session high of $66.51. U.S. oil gained $1.03, or 1.7%, to settle at $62.94.
“Traders do not want to miss out on a potential bullish OPEC+ meeting so a limited optimism is reflected in prices,” said Bjornar Tonhaugen of Rystad Energy.
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