OPEC+ delegates said a final decision on the size of the cuts won’t be made until ministers gather in Vienna on Wednesday. West Texas Intermediate jumped around 3%, putting prices on track for the first gain in three sessions. “The slide in oil prices is likely over," said Ed Moya, senior market analyst at Oanda Group. “Energy traders turned pessimistic over the summer given global slowdown fears, but now it seems the risks for oil are to the upside." Also Read: OPEC to cut oil output for first time in a year Oil fell by a quarter in the three months through September as a slowing global economy sapped demand.
Banks including UBS Group AG and JPMorgan Chase & Co. said the Organization of Petroleum Exporting Countries and its allies may need to trim output by least 500,000 barrels a day to stabilize prices.
A cut of more than 1 million barrels a day “will be enough to put a floor under prices," said Phil Flynn, a senior market analyst at Price Futures Group.
A large output cut may draw criticism from the US and other major consuming-nations, where energy-driven inflation has forced central banks to aggressively jack up interest rates.