On Monday, oil prices climbed almost USD 4 as OPEC+ considers decreasing output by more than 1 million barrels per day (BPD) to buttress prices with its biggest cut since the start of the COVID-19 pandemic. Reportedly, Brent crude futures rebounded USD 3.46, or 4.1 per cent, to USD 88.60 a barrel by 0915 GMT. US West, Texas Intermediate crude was USD 3.39, up 4.3 per cent, at USD 82.88.

Since June, oil prices have fallen for four straight months, as lockdowns in top energy consumer China hurt demand while increasing interest rates and a rising US dollar weighed on global financial markets. To support prices, OPEC+ (Organization of the Petroleum Exporting Countries and its allies) is considering an output cut of more than 1 million BPD (barrels per day) ahead of Wednesday’s meeting. If agreed, it would be the group’s second consecutive monthly cut after reducing output by 100,000 BPD (barrels per day) last month.

On Monday, the dollar index plunged for a fourth consecutive day after touching its highest in two decades. A cheaper dollar could strengthen oil demand and support prices.