The price of oil reached a 3-month high, ahead of the OPEC meeting

Predictions that OPEC and allies would extend record production cuts through July have impacted on the price of crude oil. Brent crude oil futures, the global benchmark, rose above $ 41 a barrel for the first time since early March.

The OPEC alliance will meet on Saturday to discuss extending the production cut by one month.
OPEC members and their allies, including Russia and Mexico, had previously pledged to cut production by 9.7 million barrels a day in May and June to help raise oil prices when demand starts to rise.

Bjornar Tonhaugen, director of oil markets at Rystad Energy, noted that oil producers still had to pursue a tough policy. They will likely want to continue to want to get rid of the oil they have stored in order to push the price to a more sustainable level.

"Even if demand exceeds supply for a while, it doesn't mean we have a problem."

Tonhaugen said Friday.

Investors are now focusing mainly on what will happen in August. Craig Erlam, a senior market analyst in Oanda, believes that production could start to slowly pick up right now.

"People are starting to leave home, go back to work and national borders are reopening. Record cuts in production will not have to last long to keep prices down," he said.



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