Oil price rises on optimism before OPEC+ meeting
The group is expected to return 1.5 million barrels per day of production to the market
The price of Brent crude climbed to $45 per barrel as anticipation grows for the meeting of the Organisation of Petroleum Exporting Counries and its allies, collectively known as OPEC+. The organisation's technical committee reviewed the deal to cut supply on Monday, and a ministerial meeting is set for Wednesday.
The organisation made deep cuts to production, dropping 10% of global supply due to the drop in demand as a result of the coronavirus pandemic. OPEC+ is planning to return approximately 1.5 million barrels per day of production this month.
“OPEC’s performance has been successful because the price of oil has risen from $16 in May to around $45 and has stabilised,” Bijan Zanganeh, Iran's oil minister said, according to the ministry website SHANA.
Bloomberg reported that compliance with the cuts sat at 95% in July, according to delegates.