Oil prices have been given a lift at the prospects of OPEC+ supply cuts in a bid to offer stability to markets.
Brent oil has been restored to levels around the psychologically-important $100/bbl line, though remains capped by its 50-day simple moving average for the time being.
An official confirmation by OPEC+ to intervene with tighter production would significantly shore up oil’s presence above $100/bbl.
However, demand-side risks would still have a major say over how oil prices fare over the near-term. Should major central bankers press on with supersized rate hikes that erode demand, a darker outlook for the global economy could well suppress oil’s propensity for further gains.