Oil prices climbs after OPEC+ continues output restrictions, yet heading for weekly losses

Oil climbs after OPEC continues output restrictions

On Friday, oil prices increased due to an agreement by OPEC+ to maintain their current oil supply policy, although benchmarks remained poised for weekly losses as unsubstantiated reports suggested an Israeli-Hamas truce could occur.

U.S. West Texas Intermediate crude prices rose 36 cents or 0.5% at 0730 GMT to $74.18 a barrel while Brent crude futures gained 44 cents or 0.6% to reach $79.14.

According to two OPEC+ sources, OPEC+ has not modified its oil output strategy and will make its decision regarding voluntary oil production limits that were put in place during the first quarter. A final decision on these voluntary limits will come down in March.

As announced in November, OPEC and its allies led by Russia – known collectively as OPEC+ – have implemented output cuts of 2.2 million barrels per day (bpd) for the first quarter.

On Friday, analysts from ANZ Research stated in a report published online that such production cutbacks should help sustain tight supplies during the first quarter, since non-OPEC production growth should normalize while U.S. output growth could decline to 300,000.00 barrels per day from an expected 8 million this year.

Oil prices as of 5:20 PM on February 2, 2024:

  • Brent Crude prices increased 2.3%
  • versus yesterday to reach $75.76 a barrel;
  • West Texas Intermediate (WTI) gained 2.5 percent to reach $70.67 per barrel and ended this week down 3.9% and 4.2%, respectively.

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