Oil Gains 2% Despite OPEC+ Decision

Oil prices settled higher on Wednesday after showing a mixed performance during the session, finding support from a decline in the United States crude oil inventories, according to data by the US Energy Information Administration (EIA).

A major factor that impacted oil prices today was the expected OPEC+ agreement between major producers to reduce output curbs, or rather raise production by 2 million barrels per day (bpd), thus moving production levels to 7.7 million bpd below normal levels, versus a previous cut of 9.7 million bpd, which was extended until the end of July.

Global benchmark Brent crude oil futures for September delivery settled up by 89 cents, or 2.1%, at $43.79 per barrel.

Meanwhile, the US benchmark, the West Texas Intermediate (WTI), August futures increased by crude 2.3% and closed at $41.20 per barrel.

EIA data showed a draw in US oil stocks by 7.5 million barrels last week, exceeding market expectations.