Oil rises after OPEC+ extends production cuts

Oil prices increased on Monday following the decision by OPEC+ member countries to extend their voluntary production cuts by 2.2 million barrels per day for the second quarter of the year, aligning with market expectations.

At 0134 GMT, Brent crude futures climbed by 28 cents, or 0.3 percent, reaching $83.83 per barrel. Similarly, West Texas Intermediate crude futures rose by 20 cents, or 0.3 percent, to $80.17 per barrel.

The production cuts, enforced by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, are anticipated to stabilize the market amidst global economic uncertainties and increased production from non-member countries. Additionally, Russia’s announcement of an additional cut in exports and production came as a surprise to some analysts.

Russian Deputy Prime Minister Alexander Novak stated on Sunday that Russia would decrease oil production and exports by an additional 471,000 barrels per day during the second quarter of the year.

Throughout 2024, oil prices have been bolstered by escalating geopolitical tensions, including the conflict between Israel and Hamas, as well as Houthi attacks on commercial vessels in the Red Sea. Nonetheless, concerns regarding economic growth continue to linger.