Investing.com– Oil prices settled higher Tuesday, as a report that OPEC and its allies were mulling extending production cuts in the second quarter and possibly through the end of the year, easing concerns about supply outstripping demand.
By 14:30 ET (19.30 GMT), the futures settled 1.7% higher at $78.87 a barrel and the contract gained 1.4% to settle at $83.65
OPEC+ reportedly considers extending production limits
OPEC and its allies, or OPEC+, are considering extending voluntary oil output cuts into the second quarter and possible through year end, Reuters reported Tuesday, citing unnamed sources.
In late-November last year, OPEC+ members agreed to voluntary output curbs totalling about 2.2 million barrels per day for Q1. The move to extend cuts arrived in the wake of a rising non-OPEC production, particularly in the U.S., which continues to see output near record levels.
Gaza ceasefire not yet near finish line
In a setback to Gaza ceasefire hope, Israel; and Hamas official downplayed U.S. President Joe Biden hopes of a ceasefire in Gaza for the Muslim holy month of Ramadan for about 40 days.
Basem Naim, a senior member of Hamas’s political, reportedly said that no official truce proposal had been received yet, while Israeli prime minister Benjamin Netanyahu said he had been resisting pressure to end the war “prematurely.”
Biden on Monday said Monday that Israel had agreed to a halt military activities during Ramadan, which is expected to begin Mar. 10.
Fears of supply disruptions, particularly in the Middle East, have provided oil prices with a floor in recent months.
Fresh inventory data on tap
Following the Energy Information Administration’s report last week of a much larger build in U.S. crude stockpiles, the American Petroleum Institute’s petroleum report due later on Tuesday will provide fresh insight into domestic supplies.
(Peter Nurse, Ambar Warrick contributed to this article.)
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