Oil rebounds from biggest slump since Nov ahead of a key Opec+ meeting
Oil rebounded from its biggest slump since November ahead of a key Opec+ meeting that may see some supply returned to a fast-tightening market.
At 8.48 pm (IST), Brent crude was trading at $64.65 a barrel, up 0.36 per cent. The alliance gathers on Thursday and is expected to loosen the taps after prices got off to their best ever start to a year. But it’s unclear how robustly the group will act, with the Saudi Arabian energy minister calling for producers to remain “extremely cautious.”
Oil’s recovery from the Covid impact has been driven by Asian demand, as well as fiscal stimulus. The data showed most key manufacturing economies gained ground last month, with China staying in expansionary territory. Positive sentiment in the equity markets also aided crude, while US President Joe Biden’s $1.9 trillion relief plan moved closer to realisation after passing the House of Representatives.
