Brent crude for June delivery continued its upward trend this Monday, climbing 5.2% after 1044 GMT in London to $83.99 after major producers announced production cuts.
North Sea oil, Europe’s benchmark, opened Monday’s London futures session up 4.8% to $83.63 after closing Friday’s session at $79.77.
However, oil prices rose sharply after Saudi Arabia, Iraq and several Gulf states announced on Sunday that they would cut oil production by more than a million barrels a day from May.
The OPEC+ oil alliance committee, led by Saudi Arabia and Russia, is due to hold a teleconference today to discuss the market situation following the announcement of a “voluntary” production cut.
This reduction in oil production will be added to the two million barrels per day cut that has been in place for the past five months.
After Russia’s invasion of Ukraine in February 2022, oil prices rose sharply, but have recently returned to pre-conflict levels.
The United States asked large producers to increase production to lower energy prices, which caused inflation to rise.