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Futures Movers: Oil prices edge higher ahead of OPEC+ meeting

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Oil futures edged higher Tuesday as investors awaited a meeting of the Organization of the Petroleum Exporting Countries and its allies, while worries remained over a surge in COVID-19 cases in India.

West Texas Intermediate crude for June delivery
CL00,
+0.89%

CLM21,
+0.89%

rose 44 cents, or 0.7%, to $62.35 a barrel on the New York Mercantile Exchange. June Brent crude
BRN00,
+0.86%

BRNM21,
+0.72%
,
the global benchmark was up 38 cents, or 0.6%, at $66.03 a barrel on ICE Futures Europe.

Attention this week is focused on the OPEC+ meeting on Wednesday, with officials set to decide whether to stick with a timetable that would see producers ease output cuts beginning next month.

“It remains to be seen whether this increase may prove premature given that the situation is deteriorating just now in the leading oil importing countries such as India, Japan and Turkey,” said Eugen Weinberg, commodity analyst at Commerzbank, in a note. Oil production in Libya, which recently fell by as much as 300,000 barrels a day, is also likely to recovery quickly, he noted.

A surge in COVID-19 cases in India, the world’s third largest oil importer, has fueled worries about energy demand. India recorded more than 320,000 new cases and 2,771 deaths on Tuesday, according to the New York Times. It was its sixth straight day with more than 300,000 cases and countries around the world have started to send help in the form of oxygen supplies, equipment and tests.

Concerns about the surge in COVID case in India and Japan have fuelled expectations that OPEC+ may hold off on easing production cuts and helped lift crude on Monday, analysts said.

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