<p>Oil rebounded on Tuesday after falling to more than 11-month lows in the previous session, as investors weighed a potential output adjustment from the major oil producers, who are set to have a key meeting this week.</p>.<p>Brent crude futures advanced $1.81, or 2.2 per cent, and traded at $85.00 a barrel at 0446 GMT. US West Texas Intermediate (WTI) crude futures rose $1.37, or 1.8 per cent, to $78.61 a barrel.</p>.<p>Brent settled down 0.5 per cent the previous day, having slumped more than 3 per cent to $80.61 earlier in the session to its lowest since Jan. 4. WTI settled up 1.3 per cent on Monday after touching its lowest since December 2021.</p>.<p>Although the market is already correcting itself after a sharp drop, word that the OPEC+ would seriously consider additional production cuts at the upcoming meetings further fuelled the price jump, analysts from Haitong Futures said in a note.</p>.<p>"Although this is merely a guess ... not the official statement from the OPEC, it still reflects the near-term market sentiment and is likely to be the turning point of the oil prices," they said.</p>.<p>The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, known as OPEC+, are set to hold a meeting on Dec. 4. Analysts at Eurasia Group suggested in a note on Monday that weakened demand out of China could spur OPEC+ to cut output.</p>.<p>OPEC+ started to lower its output target by 2 million barrels per day (bpd) in November, aiming to shore up oil prices.</p>.<p>But the fear of demand destruction in China kept pressure on the market despite a drop of daily Covid-19 cases on Monday.</p>.<p>"Bearish moods toward oil prices are spreading in Asia due to concerns about a decline in China's demand while the rare protests over the weekend also raised fears over the impact on Chinese economy," said Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd.</p>.<p>The rare street protests that erupted in cities across China over the weekend were a vote against President Xi Jinping's zero-Covid policy and the strongest public defiance during his political career, China analysts said. Beijing has stuck with the zero-Covid policy even as much of the world has lifted most restrictions.</p>.<p>Markets are also assessing the impact of an upcoming Western price cap on Russian oil.</p>.<p>Group of Seven (G7) and European Union diplomats have been discussing a cap of between $65 and $70 a barrel, with the aim of limiting revenue to fund Moscow's military offensive in Ukraine without disrupting global oil markets. Russia calls its actions in Ukraine "a special operation".</p>.<p>But EU governments failed to agree on Monday on the cap, with Poland insisting the cap should be set lower than proposed by the G7, diplomats said.</p>.<p>The price cap is due to come into effect on Dec. 5, when an EU ban on Russian crude also takes effect.</p>
<p>Oil rebounded on Tuesday after falling to more than 11-month lows in the previous session, as investors weighed a potential output adjustment from the major oil producers, who are set to have a key meeting this week.</p>.<p>Brent crude futures advanced $1.81, or 2.2 per cent, and traded at $85.00 a barrel at 0446 GMT. US West Texas Intermediate (WTI) crude futures rose $1.37, or 1.8 per cent, to $78.61 a barrel.</p>.<p>Brent settled down 0.5 per cent the previous day, having slumped more than 3 per cent to $80.61 earlier in the session to its lowest since Jan. 4. WTI settled up 1.3 per cent on Monday after touching its lowest since December 2021.</p>.<p>Although the market is already correcting itself after a sharp drop, word that the OPEC+ would seriously consider additional production cuts at the upcoming meetings further fuelled the price jump, analysts from Haitong Futures said in a note.</p>.<p>"Although this is merely a guess ... not the official statement from the OPEC, it still reflects the near-term market sentiment and is likely to be the turning point of the oil prices," they said.</p>.<p>The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, known as OPEC+, are set to hold a meeting on Dec. 4. Analysts at Eurasia Group suggested in a note on Monday that weakened demand out of China could spur OPEC+ to cut output.</p>.<p>OPEC+ started to lower its output target by 2 million barrels per day (bpd) in November, aiming to shore up oil prices.</p>.<p>But the fear of demand destruction in China kept pressure on the market despite a drop of daily Covid-19 cases on Monday.</p>.<p>"Bearish moods toward oil prices are spreading in Asia due to concerns about a decline in China's demand while the rare protests over the weekend also raised fears over the impact on Chinese economy," said Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd.</p>.<p>The rare street protests that erupted in cities across China over the weekend were a vote against President Xi Jinping's zero-Covid policy and the strongest public defiance during his political career, China analysts said. Beijing has stuck with the zero-Covid policy even as much of the world has lifted most restrictions.</p>.<p>Markets are also assessing the impact of an upcoming Western price cap on Russian oil.</p>.<p>Group of Seven (G7) and European Union diplomats have been discussing a cap of between $65 and $70 a barrel, with the aim of limiting revenue to fund Moscow's military offensive in Ukraine without disrupting global oil markets. Russia calls its actions in Ukraine "a special operation".</p>.<p>But EU governments failed to agree on Monday on the cap, with Poland insisting the cap should be set lower than proposed by the G7, diplomats said.</p>.<p>The price cap is due to come into effect on Dec. 5, when an EU ban on Russian crude also takes effect.</p>