Oil rises on production cut expectations

Oil prices rose after a series of losses as the market weighed the possibility of deeper OPEC+ output cuts against signs that global supply is outpacing demand. Brent crude traded above $80 a barrel after a four-day losing streak that saw futures fall 3%. U.S. crude was near $75. Delegates said Saudi Arabia, the de facto leader of OPEC+, had asked other members to reduce their production quotas to support markets, despite resistance from some members. “It’s important not to underestimate the Saudis’ determination. But it will be difficult for them to get support from all member states,” said Vishnu Varathan, head of Asia economics and strategy at Mizuho Bank. Crude has fallen by nearly a fifth since late September amid a supply glut and concerns about the global economic outlook, prompting the 23-nation alliance to intervene in its online meeting on Thursday. The International Energy Agency warned earlier this month that markets would return to surplus next year because of a dramatic slowdown in demand growth. A Bloomberg survey of investors and analysts late last week showed about half of respondents expect OPEC+ to take more measures to tighten the market. Prices could fall to as low as $70 a barrel if the alliance fails to announce additional cuts of about 1 million bpd on top of Saudi Arabia’s restrictions, according to analysts at Eurasia Group led by Raad Alkadiri.