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Oil rises as OPEC+ seen sticking to policy despite India COVID surge

Oil prices rose on Tuesday as OPEC+ sources said the producer group would stick to existing plans to boost oil output slightly from May 1, suggesting they do not see a lasting impact on demand from India’s coronavirus crisis.

The group has also ditched plans to hold a full ministerial meeting on Wednesday, the sources said. A technical meeting on Monday had voiced concern about surging COVID-19 cases but kept its oil demand forecast unchanged.

Brent crude was up 48 cents, or 0.7%, at $66.13 a barrel by 10:59 a.m. ET (1459 GMT), after climbing to a session high of $66.45. U.S. oil gained 63 cents, or 1%, to $62.54.

“Traders do not want to miss out on a potential bullish OPEC+ meeting so a limited optimism is reflected in prices,” said Bjornar Tonhaugen of Rystad Energy.

The producer group known as OPEC+ is set to slightly ease oil output cuts from May 1, under a plan agreed before the coronavirus surge in India.

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Source: SweetCrudeReports

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