MELBOURNE – Oil prices inched up in early trade after OPEC+ nations reaffirmed their oil output targets ahead of a European Union ban and price caps on Russian crude, which kick off on Monday.
At the same time, in a positive sign for fuel demand, more Chinese cities eased COVID-19 curbs over the weekend.
Brent crude futures climbed 39 cents, or 0.5 percent, to $85.96 a barrel at 2309 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose 37 cents, or 0.5 percent, to $80.35 a barrel.
The Organization of the Petroleum Exporting Countries and allies including Russia, together called OPEC+, agreed on Sunday to stick to their October plan to cut output by 2 million barrels per day (bpd) from November through 2023.
Analysts said the OPEC+ decision was expected as major producers wait to see the impact of the EU import ban and Group of Seven (G7) $60-a-barrel price cap on seaborne Russian oil, with Russia threatening to cut supply to any country adhering to the cap.
“Given the unprecedented uncertainties, the OPEC+ watch and wait strategy appears very sound,” RBC Capital Markets analysts said in a note.