Crude Oil Unceasingly Racks Up After Slumps In Production By OPEC

brent oil prices

Crude Oil : WTI  were trading around the $88 per barrel mark, close to levels not seen in more than three weeks, after OPEC+ agreed on a bigger-than-expected output cut Production , squeezing supplies in an already tight market.

While Brent crude futures traded near $94 per barrel on Thursday, having rallied about 10% so far this week as OPEC+ agreed to cut output by 2 million barrels per day or about 2% of global supply,

The cartel’s Gulf oil producer decided to cut production by 2 million barrels per day or about 2% of global supply, the most significant output curb since the start of the pandemic.

Saudi Arabia Crude Oil , OPEC’s de facto leader, said the group moved in response to a weakening global growth Production outlook and to prevent a price crash like that seen in 2008.

However, the Biden administration rebuked such a decision and said it would explore options with the US Congress on reducing the cartel’s influence over energy prices.

Oil markets were already tight due to supply disruptions and sanctions linked to Russia’s invasion of Ukraine. Meanwhile, EIA data showed that US crude stocks unexpectedly fell by 1.356 million barrels last week, the second consecutive drop and the biggest in five weeks.