Oil prices rise as markets look to OPEC+ cuts; Caution persists

Investing.com-- Oil prices rose in Asian trade on Tuesday as media reports suggested that the OPEC+ planned to extend or even deepen its ongoing production cuts at a meeting later this week. 

Anticipation of a swathe of economic readings due this week also kept traders largely to the sidelines, limiting any major gains.

Reuters reported that the Organization of Petroleum Exporting Countries and allies (OPEC+) intended to collectively reduce output at a meeting this Thursday, as concerns over sluggish demand saw oil prices once again struggling to hold above $80 a barrel. 

A delay in the upcoming OPEC+ meeting- to Nov. 30 from Nov. 26- had also dented oil prices, especially as reports suggested the delay was due to disagreements over output reductions between member states.

Brent oil futures rose 0.3% to $80.20 a barrel, while West Texas Intermediate crude futures rose 0.5% to $75.20 a barrel by 20:39 ET (01:39 GMT). Both contracts were nursing five straight weeks of losses.

Saudi Arabia and Russia led the OPEC+ in cutting production over the past year,  as fears of worsening global demand pulled down prices. Saudi Arabia- the de-facto leader of OPEC+, had also attributed the decline to speculators betting against oil markets. 

The two countries are now expected to extend or even deepen their ongoing supply cuts into early-2024- a scenario which analysts say will tighten markets and boost prices. Saudi Arabia has largely attempted to keep Brent oil trading in a range of $80 to $90 a barrel.

But prices have struggled to maintain the range, as record-high U.S. production, surging Chinese stockpiles and increased output from some OPEC states spurred bets that oil markets were not as tight as initially expected.

Losses were