Global oil prices hit $90 per barrel as OPEC mulls output cut

Adeleye Kunle Reports

Oil prices firmed on Thursday, erasing earlier losses, on indications that OPEC+ might cut output, though a stronger dollar and weak economic outlook kept a lid on gains.

Brent crude futures rose 52 cents, or 0.6 per cent, to $89.84 a barrel by 1027 GMT and U.S. crude futures rose by 52 cents, or 0.6 per cent to $82.67.

Leading members of OPEC+ have begun discussions about an oil output cut when they meet on October 5, two sources from the producer group said.

One source from the Organisation of the Petroleum Exporting Countries (OPEC) said a cut looks likely but gave no indication of volumes.

Reuters reported this week that Russia is likely to propose that OPEC+ reduces oil output by about 1 million barrels per day (bpd).

Hurricane Ian also provided price support; about 157,706 bpd of oil production was shut down in the Gulf of Mexico as of Wednesday, according to the Bureau of Safety and Environmental Enforcement.

Both crude benchmarks had rebounded in the previous two sessions from nine-month lows earlier in the week, buoyed by a temporary dive in the dollar index and a larger than expected U.S. fuel inventory drawdown.

(Reuters/NAN)