Oil holds gain as investors assess supply, possible OPEC+ cut

Oil held the biggest gain in more than a month as traders weighed supply concerns, including the possibility of an OPEC+ output cut.

West Texas Intermediate edged lower in Asia after jumping 4.2 per cent on Tuesday on concerns about the potential for supply interruptions in Libya and a bullish market outlook from Goldman Sachs Group. Despite militia clashes in Libya, the state oil company reported output of 1.2 million barrels a day on Monday.

The Organization of Petroleum Exporting Countries and its allies convene on September 5 after a mention from leading member Saudi Arabia that an agreement to reduce production was possible as, in Riyadh’s view, oil futures didn’t reflect fundamentals. Other states in the alliance signaled their support.

Oil’s jump in the week’s opening session pared a monthly drop that’s been driven by concern a global slowdown and tighter monetary policy will hurt energy consumption.

Still, Europe remains gripped by an energy crisis as Russia chokes off supplies of gas amid the crisis in Ukraine, and the European Union moves to tighten curbs against Moscow.

Shell chief executive officer Ben van Beurden warned Monday the crunch may last for more than one winter.