Oil Prices Climb 1% as OPEC+ Plans to Meet on Output Cut
Oil Prices Climb 1% as OPEC+ Plans to Meet on Output Cut
Oil prices traded higher around 1% on Friday after OPEC+ agreed to meet in order to discuss on cutting output and two major oil traders said demand was recovering positively.
As of 14:00 local time in Thailand, WIT rose $0.59/bbl or 1.52% to trade at $39.43/bbl, while Breant climbed $0.61/bbl or 1.47% to $42.12/bbl.
According to Reuters reported on Friday, Iraq and Kazakhstan plan to compensate for overproduction in May on their supply cut commitments supported the market, which came after a meeting by the Organization of Petroleum Exporting Countries and its allies.
If the laggard producers do compensate over the next three months for their overproduction, that will effectively take extra barrels out of the market, even if OPEC+ does not extend its record 9.7 million barrels per day supply cut beyond July, said Reuters.
In addition, two major oil traders such as Vitol and Trafigura said that the global oil demand has rebounded in June, which also buoyed the market.