(Bloomberg) — Oil edged higher above $42 a barrel in New York ahead of an OPEC+ gathering this week to assess its supply deal as countries struggle to contain the virus that’s hurt economies and fuel demand globally.
The Joint Ministerial Monitoring Committee — the panel that reviews the OPEC+ agreement — is poised for a planned meeting on Wednesday, with the group starting to return some crude supply to the market this month following deep reductions. Meanwhile, U.S. shale drillers parked more drilling rigs last week as stagnant prices push the industry to extend a historic retrenchment.
Oil has been slowly pushing higher after being stuck near $40 a barrel since early June following a rapid rebound from a plunge below zero. However, the market is still facing headwinds including rising virus infections and fraying U.S.-China tensions, which may derail a nascent demand recovery.
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OPEC+ is planning to return about 1.5 million barrels a day this month after trimming roughly 10% of global supply following a crash in demand due to the outbreak. Oil exports from alliance member Oman fell 14% in July from a month earlier, according to a statement from Ministry of Oil & Gas.
In the U.S., drillers cut the number of active rigs by 4 to 172, according to data Friday from Baker Hughes Co. That’s the lowest level since July 2005, before the shale boom kicked off.
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