The Organisation of Petroleum Exporting Countries (OPEC) and its allies, at their October 5, 2022 meeting, says they are considering cutting oil output by over a million barrels per day.
Brent crude rose on Monday by 3.7 per cent or $3.15 to close at $88.3/barrel.
Another oil grade, the WTI, also increased in price on Monday. It gained $3.36 or 4.23 per cent to close at $82.83/barrel.
However, oil grades in the OPEC Basket dipped in price, shedding $0.42 or 0.45 per cent to trade at $92.34/barrel.
This came as OPEC sources told Reuters that the oil cartel and its allies were considering an output cut of over one million barrels per day at their meeting coming up tomorrow (Wednesday).
The latest figure is slightly above estimates for a cut given last week, which ranged between 500,000 bpd and 1mbpd.
The meeting to consider a reduction in global oil supply is happening at a time when governments around the world are struggling to control runaway inflation. A cut in supply leads to a rise in petroleum prices for consumers.