Washington, April 4, (dpa-AFX/GNA) – Oil prices rose sharply on Monday, buoyed by the decision of Saudi Arabia and other OPEC+ oil producers to cut oil output by around 1.16 million barrels per day.
The group said on Sunday that the production cut would come into effect from May and last until the end of the year.
The Joint Ministerial Monitoring Committee of the group met today and confirmed the 1.66 million bpd production cut that was announced on Sunday.
West Texas Intermediate Crude oil futures for May ended higher by $4.75 or about 6.3% at $80.42 a barrel.
Brent crude futures were up $5.02 or 6.2% at $84.90 a barrel a little while ago.
Saudi officials claimed the unexpected cut was a “precautionary measure aimed at supporting the stability of the oil market.”
The move drew criticism from the White House and prompted speculation that the Biden administration may go for another release of oil from the Strategic Petroleum Reserve.
“We don’t think cuts are advisable at this moment given market uncertainty-and we’ve made that clear,” a National Security Council spokesperson said.
The move by OPEC and allies comes on the back of Russia’s decision to trim oil production by 500,000 barrels per day until the end of 2023.
GNA