01.03.202109:04:00UTC+00Oil Rebounds Ahead Of OPEC Meeting

Oil prices rose over 1 percent on Monday ahead of a highly anticipated OPEC+ meeting this week, which is likely to raise production amid falling inventories.

Brent crude futures for May settlement rose 94 cents, or 1.5 percent, to $65.36 per barrel, while U.S. West Texas Intermediate (WTI) crude futures were up 95 cents, or 1.5 percent, at $62.45.

Front-month prices for both contracts hit 13-month highs last week before drifting lower on Friday, as the dollar gained in strength amid rising bond yields in reaction to encouraging economic data.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, will meet on Thursday amid speculation over output boost.

With oil prices rising to pre-pandemic levels, analysts say that global oil supply imbalance may force an output revision.

The passage of the $1.9 trillion Covid relief bill through the U.S. House of Representatives on Saturday and the approval of Johnson & Johnson's Covid-19 shot also buoyed the economic outlook.

Meanwhile, Iran has ruled out holding out an informal meeting with the United States and the European Union on ways to revive the 2015 nuclear deal, insisting that America must first lift the unilateral sanctions that have sharply reduced Iranian oil exports.