Brent crude is trading above $ 83 per barrel after the announcement of the countries participating in the OPEC + agreement on the decision to cut production. According to trading data on the ICE Intercontinental Exchange, Brent is trading at $83.53 per barrel as of 8:44 Moscow time.
Futures for WTI oil traded at $79.1 per barrel.
According to Vedomosti, over the past few days, quotes have slightly decreased: on April 2, the price of a barrel of Brent on the stock exchange reached $86.2. However, the positive effect of the OPEC+ decision has not yet been exhausted. Quotes are well above the March lows, when futures for this brand of oil traded at almost $70 per barrel.
Recall that on the eve of eight of the 20 OPEC + countries announced a decision to voluntarily reduce oil production from May until the end of the year. The total reduction in production will be about 1.657 million barrels per day. In particular, Russia and Saudi Arabia are cutting production by 500,000 bpd each. Also, production is reduced by Kazakhstan, Oman, the UAE, Kuwait, Iraq, Algeria and Gabon.
Russian Deputy Prime Minister Alexander Novak said the decision was driven by the ongoing banking crisis in the US and Europe, global economic uncertainty, and “unpredictable and short-sighted” energy policy decisions.
Source: Rosbalt
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