Oil prices edged higher after OPEC+ agreed to extend production cuts

2024-03-04 06:57:05

(1) Oil prices edged higher on Monday after members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed to extend the 2.2 million b/d voluntary production cut agreement into the second quarter, largely in line with market expectations. (2) Brent crude futures rose 0.2% to $83.71 a barrel, and U.S. West Texas Intermediate (WTI) futures rose 0.200.3% to $80.00 a barrel. (3) OPEC+'s production cuts are expected to cushion the market amid concerns about global economic growth and rising production in oil producers other than OPEC+, while Russia’s announcement also surprised some analysts. (4) Russian Deputy Prime Minister Alexander Novak said on Sunday that he would coordinate with some OPEC+ participants to cut oil production and exports by another 471,000 b/d in the second quarter. (5) ANZ analysts noted in a note on Monday that “signs of tightness in the physical market continue to push crude oil higher.” OPEC+'s production cuts continue to reduce supply amid fears of renewed tensions in the Middle East"

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