Oil prices rose more than $2 a barrel today, extending gains as investors eyed possible moves by OPEC+ producers to cut output and support prices at a meeting later in the day.
Brent crude futures advanced by $2.43, or 2.6%, to $95.45 a barrel this morning after rising 0.7% on Friday. US West Texas Intermediate crude was up $2.21, or 2.5%, at $89.08 after a 0.3% gain in the previous session.
US markets are closed for a public holiday today.
At their meeting later today, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, will discuss oil output cuts of 100,000 barrels per day among other options, sources from the group told Reuters.
"The group is expected to leave output targets unchanged, but it's likely that a cut will be at least discussed; which, if followed through on, would create more volatility and uncertainty at a time of considerable unease," said Craig Erlam, senior market analyst at OANDA.
Russia, the world's second-largest oil producer and a key OPEC+ member, does not support a production cut at this time and the producer group is likely to decide to keep output steady, the Wall Street Journal reported on Sunday, citing unnamed sources.
Oil prices have fallen in the past three months from multi-year highs hit in March, pressured by concerns that interest rate increases and Covid-19 curbs in parts of China could slow global economic growth and dent oil demand.
Lockdown measures in China's southern technology hub of Shenzhen eased today as new infections showed signs of stabilisingm though the city remains on high vigilance.
Meanwhile, talks to revive the West's 2015 nuclear deal with Iran, potentially providing a supply boost from Iranian crude returning to the market, has hit a new snag.
The White House on Friday rejected Iran's call for a deal to be linked with closure of investigations by the UN nuclear watchdog, a Western diplomat said.