Oil prices recorded a slight increase during early Monday trading, after OPEC+ member states agreed to extend voluntary production cuts by 2.2 million barrels per day in the second quarter of the year, which is largely in line with market expectations.
Price action
By 0334 GMT, Brent crude futures rose 8 cents, or 0.1 percent, to $83.64 per barrel. While West Texas Intermediate crude futures fell slightly to $79.92 per barrel.
Production cuts implemented by the Group of Petroleum Exporting Countries (OPEC) and its allies are expected to protect the market amid global economic concerns and increased production outside the group, while Russia’s announcement of an additional cut in exports and production surprised some analysts.
Russian Deputy Prime Minister Alexander Novak said yesterday, Sunday, that Russia will reduce oil production and exports by an additional 471,000 barrels per day in the second quarter of the year.
Oil prices received support in 2024 from the escalation of geopolitical tensions in light of the conflict between Israel and Hamas on the one hand, and the Houthi attacks on commercial ships in the Red Sea on the other hand, and fears related to economic growth cast a shadow on oil prices.
