Oil rises as market weighs OPEC+ supply rebalance

Oil rebounded on Tuesday after falling to more than 11-month lows in the previous session, as investors weighed a potential output adjustment from the major oil producers, who are set to have a key meeting this week, Reuters reported.
Brent crude LCOc1 futures advanced $1.81, or 2.2%, and traded at $85.00 a barrel at 0446 GMT. U.S. West Texas Intermediate (WTI) crude CLc1 futures rose $1.37, or 1.8%, to $78.61 a barrel.
Brent settled down 0.5% the previous day, having slumped more than 3% to $80.61 earlier in the session to its lowest since Jan. 4. WTI settled up 1.3% on Monday after touching its lowest since December 2021.
Although the market is already correcting itself after a sharp drop, word that the OPEC+ would seriously consider additional production cuts at the upcoming meetings further fuelled the price jump, analysts from Haitong Futures said in a note.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, known as OPEC+, are set to hold a meeting on Dec. 4. Analysts at Eurasia Group suggested in a note on Monday that weakened demand out of China could spur OPEC+ to cut output.
OPEC+ started to lower its output target by 2 million barrels per day (bpd) in November, aiming to shore up oil prices.
But the fear of demand destruction in China kept pressure on the market despite a drop of daily COVID-19 cases on Monday.