Oil prices extend gains ahead of OPEC+ meeting
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The news: Global oil prices advanced this morning off the back of heightened tensions in the Middle East and growing expectations that the world's major oil producers will roll over output cuts into the second half of the year.
The numbers: Brent futures were up 0.3% to USD84.18 ($126.43) a barrel by 12:20pm AEST, having closed 1.4% higher on Tuesday, according to Bloomberg. West Texas Intermediate was also up 0.4%, at USD80.14.
In the local market, energy was the best performing sector on the ASX on Wednesday morning, adding 0.12% as the wider sharemarket lowered 0.99%.
Woodside gained 0.15% while Santos (-0.13%) and Ampol (-0.2%) were trading above the broader market.
The context: Brent crude has climbed around 7% this year, buoyed by tensions in the Middle East and output cuts by the Organization of the Petroleum Exporting Countries and its allies (OPEC+).
However, increased supply outside the OPEC+ nations, combined with softening demand in Asia, has seen prices recede since April.
OPEC+ is due to meet on 2 June, with producers expected to discuss extending voluntary output cuts of 2.2 million barrels per day into the second half of the year.
The source: Bloomberg
