Oil rose sharply in price after OPEC+ decision to reduce production
Brent crude oil rose sharply by more than 8% after the sudden decision of Saudi Arabia and other OPEC+ members to reduce production, as well as Russia to extend its production cuts until the end of the year. This is reported by Reuters.
Thus, according to the Intercontinental Exchange, the value of contracts for the supply of Brent oil with execution in June during trading rose by 8.2%.
At the peak, futures were worth $86.44 per barrel — this is $6.55 more than it was at the close of trading on March 31. According to the source, this may be the fastest rate of price appreciation during the trading day in more than a year.
The decision of the OPEC+ countries shocked the markets. Now, in total, production will decrease by 3.66 million barrels per day — this is 3.7% of global demand.
It also affected the shares of the largest tanker—owning companies, including Frontline, Euronav and DHT Holdings, Bloomberg reports. About 40% of crude oil on the world market is transported by sea. In this regard, the reduction in oil production will lead to a significant reduction in loading.
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