Brent crude up 4.40%, WTI up 7.07% following new OPEC+ deal on Oil production cuts

Brent crude up 4.40%, WTI up 7.07% following new OPEC+ deal on Oil production cuts
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  • calendar-gray 13 April 2020

Oil prices are on the rise on Monday morning, with Brent crude up 4.40% and WTI crude up 7.07%, in the wake of the new deal reached on Sunday by OPEC+ countries to cut production by nearly 10 million barrels a day, APA reports quoting Sputnik.

As of 04:21 Moscow time on Monday (01:21 GMT), the price of June futures for Brent was rising 4.40 percent, up to $33.22 per barrel, market data showed. The price of May futures for WTI crude grew 7.07 percent to $24.37 per barrel.

As of 01:07 Moscow time on Monday (22:07 GMT on Sunday), the price of June futures for Brent crude was falling 0.66 percent, down to $31.61 per barrel, while the price of May futures for WTI crude fell 1.81 percent to $22.79 per barrel.

OPEC+ oil producers reached a new agreement on Sunday to collectively reduce oil production by 9.7 million barrels a day for two months, starting from 1 May. After that, production will be cut by 7.7 million barrels a day for 6 months, until 31 December. Starting from January of next year until April 2022 oil production will be reduced by 5.8 million barrels per day.

According to a final communique released after the Sunday agreement, a possible extension of the new OPEC+ deal will be discussed in December 2021. A meeting will also be held this June via videoconference to see if any further actions are needed to balance the market amid the coronavirus pandemic.

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