Oil Prices Rebound on Tightening Supplies and Opec+ Output Halt

Oil prices rebounded strongly on Wednesday after shrinking US crude inventories sparked concerns of tightening supplies. The Brent futures price rose by $2.71, or 3.2%, to $86.80 a barrel at 0002 GMT, while the West Texas Intermediate (WTI) crude price increased by $2.26, or 3.4%, to $81.95.

The rise in oil prices comes after a pause in fighting between Washington and Tehran led to hopes that efforts to end the US-Iran conflict would resume in earnest. However, Iran has denied seeking to resume talks with the US.

Opec+ is expected to halt oil output increases for three months starting in October, according to sources told Reuters. This decision comes after the producer group completes the scheduled return of barrels following voluntary cuts.