Oil prices continue to rise on Tuesday after a year’s biggest jump in the previous session on the decision of several OPEC+ countries, including Saudi Arabia, to further cut production.
June Brent crude futures on London’s ICE Futures exchange are at $85.32 a barrel by 8:05 a.m., up $0.39 (0.46%) from the previous session’s closing price. Those contracts rose $5.04 (6.3%) to $84.93 a barrel on Monday.
The price of WTI crude oil futures for May at electronic trades of NYMEX grew by that time by $0.38 (0.47%) up to $80.80 per barrel. The contract value grew by $4.75 (6.3%) to $80.42 per barrel at the end of previous session.
The rise in value of Brent on Monday was the highest since March 21, 2022, WTI – since April 12 last year, according to Dow Jones.
On Sunday evening, 9 of the 20 OPEC+ countries announced voluntary production cuts from May through the end of the year, in addition to commitments to adjust oil production made at last October’s meeting (a total reduction of 2 million bpd to August 2022 levels).
The additional voluntary production adjustment by OPEC+ countries will total 1.66 million bpd, according to a statement released after the OPEC+ monitoring committee meeting on Monday.
The unexpected decision of some OPEC+ states led to a revision of forecasts for oil prices by a number of experts and triggered a new wave of concerns over inflation, Bloomberg notes.
Analysts at Goldman Sachs raised the price forecast for Brent for December 2023 to $95 from $90 and for December 2024 to $100 from $95 per barrel.
Rystad Energy experts admit that the price of Brent may rise to the region of $110 per barrel this summer.
