The current production cut by OPEC+ countries is in addition to the 2 million b/d cut announced in October last year.
World oil prices rose sharply after several countries of the OPEC + alliance announced further production cuts. This was confirmed by the trading data on Monday, April 3.
Thus, Brent crude for June delivery on the London ICE Futures exchange rose by $4.38 (+5.48%) to $84.27 per barrel. Last Friday, Brent rose $0.50 (0.6%) to $79.77 a barrel.
Accordingly, WTI crude futures for May delivery on the New York Mercantile Exchange rose $4.10 (+5.42%) to $79.77 per barrel. In the previous session, the contract increased by $1.3 (+1.8%) to $75.67 per barrel.
It was previously known that eight of the 20 OPEC + countries announced a voluntary reduction in oil production from May to the end of the year by 1.657 million bpd. Of these, 500,000 b/d will fall to the leaders of the deal – Russia and Saudi Arabia. The statement was made before a meeting of the OPEC+ Monitoring Committee.
According to analysts’ forecasts, such a price cut could lead to an increase in the price of oil by $10 per barrel.
The White House has already called the decision of the OPEC + countries “irrational”, given the uncertainty in the market. US authorities believe the world needs lower oil prices to support economic growth and prevent Russian President Vladimir Putin from getting more revenue to finance the war in Ukraine.
The current cut is in addition to the 2 million b/d cut announced in October last year.
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Source: korrespondent
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