Oil prices have risen as the market anticipates a crucial Opec+ meeting expected to determine production quotas.
The international benchmark, Brent crude, increased by 1.5% to nearly $83 per barrel, following a more than 2% surge on Tuesday.
The uptick in prices is attributed to expectations that the US Federal Reserve may have concluded its interest rate hikes and could potentially reduce borrowing costs next year.
This anticipation has led to a weaker dollar recently, which in turn has elevated the prices of Brent and the US’s West Texas Intermediate, both traded in the world’s primary reserve currency.
In the meantime, the Opec+ group is scheduled to convene on Thursday to decide on policies for 2024. However, there remains an unresolved disagreement regarding production quotas for certain African nations.
Keshav Lohiya, the founder of Oilytics, commented, “A rally driven by macro risk-on sentiment has propelled oil prices upward.
The oil markets are relatively calm as they await Opec’s decision tomorrow.”
