After spending much of the day’s session in the red, crude oil prices climbed higher past noon on Monday to eventually settle on a firm note.
Oil prices fell to an 11-month low earlier in the day, as worries about outlook for demand from China rose amid the growing unrest in the country due to widespread protests against Covid lockdowns in several cities.
However, oil prices surged higher amid speculation OPEC+ will seriously consider a new production cut at its meeting early next month.
Saudi Energy Minister Abdulaziz bin Salman had indicated last week that the OPEC+ will likely decide to increase output cut later this week.
West Texas Intermediate Crude oil futures for January settled with a gain of $0.96 or about 1.3% at $77.24 a barrel, well off the day’s low of $73.60 a barrel.
Brent crude futures were up $0.15 or 0.12% at $83.86 a barrel a little while ago.
The Organization of the Petroleum Exporting Countries and allies including Russia, collectively known as OPEC+, will meet on December 4 to discuss their production strategy. The group had last month agreed to reduce its output target by 2 million barrels per day through 2023.
Traders also continued keep traking news about the Group of Seven and European Union Diplomats’ discussions regarding a price cap on Russian oil of between $65 and $70 a barrel.