Oil prices climbed 2 percent on Friday on expectations that the Organisation of Petroleum Exporting Countries and its allies, called (OPEC+), will cut production.
At 9.40 GMT+1, Brent crude climbed 2.71 percent to $95.07 a barrel, while West Texas Intermediate crude jumped over 2 percent to $89.34 a barrel.
The OPEC+ meeting will be held on September 5, on the back of declining oil prices and falling demand, even as Saudi Arabia, the top oil producer, called for supply tightening.
Nigeria, one of Africa’s top producers, has backed Saudi’s call for output cuts.
Timipre Sylva, minister of state for petroleum resources, said the cut would ensure a stable oil market.
Last month, the oil cartel added 100,000 bpd to the market supply.
Warren Patterson, head of commodity research at ING, said the group is expected to leave production targets unchanged.
“Their own numbers show a tighter-than-expected market, and they would probably also want some more clarity on Iranian supply before making any big changes to output policy,” Patterson told Reuters.
The joint technical committee (JTC) of OPEC had said it expects a market deficit in its base case for 2023 as G7 countries plan for a potential price cap on Russian oil exports.
G7 countries are the US, UK, France, Germany, Italy, Canada, and Japan.
Later today, G7 finance ministers are expected to solidify plans to impose a price cap on Russian oil to slash Moscow’s revenue and crude price surge.