Oil prices edge higher ahead of OPEC+ output policy meeting

Oil prices edge higher ahead of OPEC+ output policy meeting

MELBOURNE/BEIJING: Oil prices rose on Tuesday as investors embraced expectations that oil producers will add supply at a meeting on Tuesday as a sign that fuel demand remains robust despite the spread of the omicron variant of COVID-19. Brent crude futures gained 43 cent to $79.41 a barrel at 0502 GMT, while US West Texas Intermediate, or WTI, crude recouped its earlier loses and rose 33 cents to $76.41 a barrel. The benchmark contracts both climbed more than 1 percent on Monday. "Number one driver (of global oil prices) at the moment is management of the supply side of the market by OPEC+," said Virendra Chauhan, analyst from Energy Aspects. The Organization of the Petroleum Exporting Countries, Russia and allies, together called OPEC+, are due to meet on Tuesday. The Joint Ministerial Monitoring Committee will meet at 1200 GMT, followed by a ministerial meeting at 1300 GMT, both by video conference. Chauhan also said that fuel demand concerns from the spread of omicron are ebbing and the planned releases of crude from various national strategic petroleum reserves are smaller than expected. Three OPEC+ sources told Reuters the group is likely to stick to its plan to increase output by 400,000