Oil jumps $3 as OPEC-plus plans to cut oil output targets by 100,000 bpd

Oil prices have fallen in the past three months from multi-year highs hit in March, pressured by concerns that interest rate increases and Covid curbs in parts of China could dent oil demand

Oil prices rose more than $2 a barrel on Monday, extending gains as OPEC+ producers agreed to cut oil output targets by 100,000 bpd in October, according to a source.

Brent crude futures futures for November delivery rose $3.57 to $96.59 a barrel, a 3.8% gain, by 7:24 a.m. ET (12:24 GMT).

U.S. West Texas Intermediate crude was up $2.13, or 2.5%, at $89 after a 0.3% gain in the previous session.

U.S. markets are closed for a public holiday on Monday.

The chairman of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, said it would consider calling for an OPEC and non-OPEC ministerial meeting anytime to address market developments, if necessary.

 

A source said OPEC+ would hold its next meeting on Oct. 5.

Russia, the world's second-largest oil producer and a key OPEC+ member, does not support a production cut at this time and the producer group is likely to decide to keep output steady, the Wall Street Journal reported on Sunday, citing unnamed sources.

Oil prices have fallen in the past three months from multi-year highs hit in March, pressured by concerns that interest rate increases and COVID-19 curbs in parts of China could slow global economic growth and dent oil demand.

Lockdown measures in China's southern technology hub of Shenzhen eased on Monday as new infections showed signs of stabilising though the city remains on high vigilance.

Meanwhile, talks to revive the West's 2015 nuclear deal with Iran, potentially providing a supply boost from Iranian crude returning to the market, has hit a new snag.

The White House on Friday rejected Iran's call for a deal to be linked with closure of investigations by the U.N. nuclear watchdog, a Western diplomat said.