Oil hits 1-week high ahead of OPEC+ meeting

Oil prices continued to rise as the US market opened on Tuesday, and hit a 1-week high and resumed rally after a pause yesterday, ahead of the OPEC-Plus meeting later today.

US crude rose 1.2% to its highest level since April 20 at $62.71, after opening at $61.95, and hit a low of $61.94, and Brent rose 1.0% to a 1-week high of $66.42 a barrel, after opening at $65.76, and hit a low of $65.68.

US crude lost 0.3% yesterday, and Brent crude fell 0.4%, posting their first loss in 3 days, as the coronavirus crisis escalates in India.

The agenda of the OPEC showed that the meeting of OPEC-Plus collation and OPEC ministerial meeting will take place today, a day ahead of its scheduled date.

The Russian news agency TASS said that the OPEC-Plus meeting is scheduled to be held at 12 GMT today, and the ministerial meeting will being afterwards.

The OPEC-Plus coalition decided in early April to gradually increase oil production starting next May, with a hike of 1.15 million barrels per day distributed over 3 months.

The decision includes an increase of 350,000 bpd in May, a similar increase in June, and 450,000 bpd in July.

Based on this decision, the current output cut will be reduced by 7.2 million barrels in April to 6.85 million barrels in May, and to 6.5 million barrels in June, and then to nearly 6 million barrels in July.

Saudi Arabia also stated that during that period it would also ease its 1 million bpd voluntary cut, and its production will increase by 250,000 barrels in May, then by 350,000 barrels in June, and by 400,000 barrels in July.

The American Petroleum Institute will release its preliminary report on the US crude inventories, and the US Energy Information Administration will release the official data on Wednesday.