Brent: Crude Oil futures surged more than 3% toward $88 per barrel on Monday following reports that OPEC+ was considering cutting output by more than 1 million barrels per day to arrest falling oil prices.
That could potentially be the biggest production cut since the height of the Covid-19 pandemic, with the group set to announce its final decision when it meets on Oct. 5.
The move is also expected to attract the ire of the US and other major consumers which have been trying to stamp out inflationary pressures.
Those moves came as oil prices capped off their fourth straight monthly decline in September as aggressive monetary tightening by major central economies stoked fears about a global economic slowdown and weaker energy demand.
A surging dollar that makes greenback-priced commodities more expensive for overseas buyers also weighed on oil prices, as well as Covid-related uncertainties in top crude importer China.
