JABAR EKSPRES – Crude oil futures posted modest gains in late trade Tuesday (6/6), as members of the Organization of the Petroleum Exporting Countries (OPEC) and its partners announced new production cut measures and the world’s top exporter Saudi Arabia pledged a further production cut of 1 million barrels per day from July.
West Texas Intermediate (WTI) crude oil for July delivery added 0.41 US dollars, or 0.57 percent, to settle at 72.15 US dollars a barrel on the New York Mercantile Exchange.
Brent crude oil futures for August delivery lifted 0.58 US dollars, or 0.76 percent, to settle at 76.71 US dollars a barrel on the London ICE Futures Exchange.
Both contracts extended gains of more than two percent on Friday (6/2).
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OPEC and its partners announced on Sunday (6/4) that they would deepen production cuts throughout 2024 by slashing 1.393 million barrels of crude oil production daily.
Nine OPEC+ members, led by Russia and Saudi Arabia, will also extend voluntary production cuts through 2024.
In addition, Saudi Arabia announced another plan to cut oil supply by 1 million barrels per day in July on a voluntary basis.
The Saudi energy ministry said the kingdom’s production will drop to 9 million barrels per day in July from about 10 million barrels per day in May. The voluntary cut, Saudi Arabia’s biggest in years, comes on top of a broader deal by OPEC and allies including Russia to limit supply until 2024 as OPEC+ seeks to boost sluggish oil prices.
Fatih Birol, head of the International Energy Agency (IEA), said the chances of higher oil prices have risen sharply after the new OPEC+ deal.
The oil market surged as OPEC+ decided to cut production but traders used the rally as an opportunity to take profits, said Vladimir Zernov, analyst at market information supplier FX Empire.
