Oil Prices Rise: What is the Relationship with Production Cut Bets?

Oil prices rose, supported by bets that the "OPEC+" coalition will discuss production cuts during a meeting scheduled for September 5. However, prices are still on track to record their worst weekly decline in four weeks due to fears of COVID-19 restrictions in China and weak global demand growth. As of 01:17 GMT, Brent crude futures increased by $1.20 or 1.3% to $93.56 per barrel. West Texas Intermediate crude futures rose by $1.16 or 1.3% to $87.77 per barrel. Both crude contracts fell by three percent in the previous session to their lowest level in two weeks. Brent crude is heading for an approximate eight percent weekly decline, while West Texas Intermediate crude is set for a reduction of about six percent for the week. The "OPEC+" coalition, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies, is expected to meet on September 5 against the backdrop of falling oil prices and declining demand, although Saudi Arabia states that supplies remain limited.