Here’s a snapshot of price action in WTI crude over the last week or so:
WTI crude oil hourly chart
The latest news is this one here, with reports stating that the additional production cuts could be more than 1 million bpd; though depending on the contribution by each of the bloc’s members. It is understood that almost all members appear to be in consensus that more production cuts are needed at this point in time.
And that is helping oil to rally further to above $79 currently, up by roughly 2% on the day.
Just last week, the internal strife within the bloc had led to a drop in oil prices to as low as $74 before prices stabilised as the delayed meeting looked to get back on track. And now, we have another twist to the saga here, although the details are yet to be announced and sorted out.
Update: Energy Intel correspondent, Amena Bakr, is reporting that the proposal is said to be around Saudi Arabia extending their voluntary cuts of 1 mil bpd and then on top of that, other states may chime in with additional production cuts. So, perhaps not as enticing as what the original headline suggested I guess. Oil back down now to $78.80 at the moment.