Brent crude rose $5.04, or 6.3%, to $84.93 a barrel, after hitting $86.44, a peak since March 7. He West Texas Intermediate crude added $4.75, or 6.28%, to $80.42 a barrel, after reaching a maximum of two months during the session.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, announced further cuts on Sunday to their production target of about 1.16 million barrels per day (bpd). The group, known as OPEC+, was expected to stick to its earlier decision to cut output by 2 million bpd through December at its monthly meeting on Monday.
The commitments bring the total volume of OPEC+ cuts to 3.66 million bpd, according to Reuters calculations, equivalent to 3.7% of global demand.
As a result, Goldman Sachs lowered its end-2023 output forecast for OPEC+ by 1.1 million bpd and raised its Brent price forecasts to $95 and $100 a barrel for 2023 and 2024, respectively, it said in a note. .
The government of US President Joe Biden said it had been “warned” of the production cut and that it had informed Saudi officials of its disagreement with it.
Brent fell last month towards 70 dollars a barrel, the lowest level in 15 months, on fears that the global banking crisis and the rise in interest rates will affect demand, despite the lower production of the OPEC in March due to the interruption of some exports from Iraq.
Source: Ambito
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