Oil holds biggest gain in six weeks with supply risks building

Oil holds biggest gain in six weeks with supply risks building

Oil held the biggest gain in more than a month as traders weighed supply concerns, including the possibility of an OPEC+ output cut.

West Texas Intermediate edged lower, trading below $97 a barrel in Asia, after jumping 4.2% in the week’s opening session amid concerns about the potential for supply interruptions in Libya and a bullish market outlook from Goldman Sachs Group Inc. Despite militia clashes in Libya, the state oil company reported output of about 1.2 million barrels a day on Monday.

The Organisation of Petroleum Exporting Countries and its allies convene on Sept. 5 after a warning from leading member Saudi Arabia that an agreement to reduce production was possible as, in Riyadh’s view, oil futures didn’t reflect fundamentals. Other states in the alliance signalled their support.