Oil chalked out a minor recovery rally during Friday’s Asian trading hours after Kuwait said there is no division in OPEC+ countries regarding extending the current output cuts into next year.
The West Texas Intermediate (WTI) crude, the North American oil benchmark, bounced to $36.50 from the overnight low of $34.92 – the level last seen on June 15.
The selling pressure ebbed as Kuwait assured markets that it would support any OPEC+ decision on oil supply.
Wires reported Thursday that some OPEC+ members, a group of major producers led by Saudi Arabia and Russia, are against the Kingdom’s idea of extending the existing output cuts of 7.7 million barrels per day into the next year. The division reports likely added intensified the risk-off-driven sell-off in oil, causing a decline to multi-month lows.
Kuwait’s comments, however, eased concerns, allowing a price bounce. The oil-exporting nation also denied reports of the divide in the OPEC+.
In April, major producers announced production cuts of nearly 10 million barrels per day to counter the coronavirus-induced price sell-off. The deal took effect from May 1 and was revised to 7.7 million barrels per day in the third quarter.