Oil prices rose on Monday, buoyed by renewed hopes that major oil producers will agree to cut output to tackle a global supply glut. This countered earlier concerns about persistent oversupply that had been weighing on the market.

Market Sentiment Shifts

The shift in market sentiment follows recent comments suggesting a willingness among some OPEC members and non-OPEC producers, such as Russia, to consider coordinated production cuts. However, skepticism remains high as previous attempts to reach a consensus have failed.

Key Factors Influencing Prices

• Production Cut Speculation: Rumors of potential production cuts are driving bullish sentiment.
• Oversupply Concerns: The market remains wary of the persistent global oversupply.
• Geopolitical Factors: Geopolitical tensions in oil-producing regions continue to add uncertainty.

Analysts caution that any gains could be short-lived if concrete agreements on production cuts are not reached soon. The market will be closely monitoring upcoming announcements and statements from key oil-producing nations.