Oil rebounds 3% as OPEC+ weighs biggest output cut since 2020

Oil prices jumped more than 3% in early Asian trade on Monday, as OPEC+ considers cutting output by more than 1 million barrels a day, for its biggest reduction since the pandemic, in a bid to support the market, Reuters reported.
Brent crude futures rebounded $2.36, or 2.8%, to $87.50 a barrel by 0622 GMT, after settling down 0.6% on Friday. U.S. West Texas Intermediate crude was up 2.9%, or $2.27, at $81.76 a barrel, after the previous session’s loss of 2.1%.
Oil prices have tumbled for four straight months since June, as COVID-19 lockdowns in top energy consumer China hurt demand, while rising interest rates and a surging U.S. dollar weighed on global financial markets.
To support prices, the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, is considering an output cut of more than 1 million bpd ahead of Wednesday’s meeting, OPEC+ sources told Reuters.