Oil futures erased early gains and ended up closing slightly higher in New Yorkafter the Organization of the Petroleum Exporting Countries and its allies (OPEC+) extended existing production levels, despite Saudi Arabia announcing an additional voluntary cut of 1 million barrels per day.
The barrel of the WTI variety closed with a rise of 0.1% at US$71.80 while the Brent type rose 0.3% and traded at US$76.30according to figures provided by the New York Mercantile Exchange (NYMEX).
Saudi Arabia announced that it would cut oil production by 1 million barrels per day in July and that the cut could be extended over time if necessary.
The announcement came after the 35th OPEC+ meeting agreed to extend current production levels until the end of 2024. in a controversial meeting in Vienna, in which the participation quotas of each oil cartel nation were modified for the next year.
The meeting went through moments of high tension and was resolved after the United Arab Emirates achieved an increase in its market share at the expense of African countries.
OPEC+ agreed last October to cut production by 2 million barrels per day. Some OPEC+ members in early April announced further cuts totaling 1.6 million barrels per day through the end of the year, including 500,000 barrels per day cuts from Saudi Arabia.
Saudi Energy Minister Abdulaziz bin Salman had threatened last week to have further cuts in pumping to prevent investor speculation, leading to a rift with Russia which opposed further cuts.
Crude rose sharply at the open on Sunday night but soon pared the gains and prices stabilized on Monday with a slight gain.
Natural gas futures contracts for July delivery rose 4.5% and traded at $2.27 per million BTU.
Source: Ambito
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