Oil prices gained more than two percent on Monday in volatile trading after falling as much as two percent, recouping losses as the market reacted to the shaky prospect of major producers being able to agree output cuts at a meeting on Wednesday.
Brent crude futures LCOc1 were $1.10 higher at $48.34 per barrel by 1410 GMT (9:10 a.m. ET), after falling in early morning trade, clawing back losses and falling again.
U.S. West Texas Intermediate (WTI) crude futures CLc1 also fluctuated widely before trading $1.10 higher at $47.16.
Trading turned choppy after prices tumbled more than 3 percent on Friday as doubts grew over whether the Organization of the Petroleum Exporting Countries would reach agreement to help curb a global supply overhang that has more than halved prices since 2014.
Market watchers expected prices to remain volatile until OPEC’s Wednesday meeting offers the market a definitive answer as to whether OPEC and non-OPEC producers can agree cuts.
“There’s going to be speculation until the meeting that makes prices very difficult to predict between now and Wednesday,” said Hamza Khan, head of commodities strategy at ING. “Whatever small fundamental news we get will be drowned out by the shouting from Vienna.”
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