Oil prices edge up ahead of OPEC+ meeting to discuss supply cuts

Oil prices edge up ahead of OPEC+ meeting to discuss supply cuts

LONDON - Oil prices rose on Tuesday as expectations that OPEC+ may agree to a large cut in crude output on Wednesday offset concerns about the global economy.

Brent crude was up 64 cents, or 0.7%, to $89.50 per barrel by 0823 GMT after gaining more than 4% in the previous session.

U.S. crude futures rose 46 cents, or 0.6%, to $84.09 a barrel, having gained more than 5% in the previous session.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, is expected to cut output by more than 1 million barrels per day (bpd) at their first in-person meeting since 2020 on Wednesday, according to OPEC sources.

Voluntary cuts by individual members could come on top of this, making it their largest cut since the start of the COVID-19 pandemic, OPEC sources said.

"We expect a substantial cut to be made, which will not only help to tighten the physical fundamentals, but sends an important signal to the market," Fitch Solutions said in a note.

Kuwait's oil minister said OPEC+ would make a suitable decision to guarantee energy supply and to serve the interests of producers and consumers.

Edward Moya, a senior analyst with OANDA, said: "Despite everything going