RIYADH: Oil prices jumped by more than $3 on Monday as the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, consider reducing output by more than 1 million barrels per day to buttress prices with what would be its biggest cut since the start of the COVID-19 pandemic.
Brent crude futures rebounded $3.55, or 4.17 percent, to $88.69 a barrel by 03.34 p.m Saudi time.
US West Texas Intermediate crude was up 4.53 percent, or $3.60, at $83.09.
Oil prices jumped nearly 3 percent on Monday, as OPEC+, considers cutting output by more than 1 million barrels a day in what would be its biggest reduction since the pandemic.
Brent crude futures rebounded $2.44, or 2.87 percent, to $87.58 a barrel by 10.13 a.m Saudi time, after settling down 0.6 percent on Friday.
US West Texas Intermediate crude was also up 2.87 percent, or $2.40, at $81.89 a barrel, after the previous session’s loss of 2.1 percent.
Shell to invest in second Malaysia oil, gas project in a month
Shell announced a second investment in Malaysia’s oil and gas sector in a month as the major and its partners, including Petronas, aim to revive output in an environment of tight global supply.
Shell’s decisions come after the war in Ukraine disrupted Russian oil and gas supplies and boosted prices. Oil and gas producers in Asia are struggling to sustain output after years of under-investment in the sector as international companies scaled back to focus on exploration and production in Africa and the Americas.
Sabah Shell Petroleum Co, a Malaysian unit of Shell, said on Monday it will invest in phase 4 of the Gumusut-Kakap-Geronggong-Jagus East deepwater offshore development project along with its partners. No amounts were given.
The GKGJE phase 4 development is a subsea tie-back project that is expected to achieve first oil in late 2024, Shell Malaysia said in a statement.
Shell’s partners in the GKGJE project include ConocoPhillips Sabah Ltd., Petronas Carigali, Sabah Oil Limited, PT Pertamina Malaysia Eksplorasi Produksi and others.
Genel Energy appoints Weir as permanent CEO
Iraqi Kurdistan-focused oil firm Genel Energy appointed Paul Weir as its full-time CEO on Monday.
Weir, who previously served as the chief operating officer, was appointed as the interim CEO in June.
(With input from Reuters)