Oil poised for gains as Opec+ decision proves price positive for markets | The National

Oil poised for gains as Opec+ decision proves price positive for markets | The National

Oil prices are poised for future gains, following the unexpected decision by Opec+ to turn on the taps and add two million barrels per day back to the market.

The group, headed by Saudi Arabia and Russia, will add 350,000 bpd next month, with a similar volume to be added in June. Opec+ will supply 450,000 bpd in July.

Saudi Arabia, the largest exporter within the group, will unwind its extraordinary commitment to supporting prices. The kingdom will boost output by 250,000 bpd in May, 350,000 bpd in June and will add 400,000 bpd in July.

The expected increase in supply caused prices to surge more than 3 per cent following the decision on Thursday. The gradual increases in output signalled higher demand and economic recovery proving price positive for the markets. The oil markets are closed today due to Good Friday.

Brent, the international marker settled 3.38 per cent higher at $64.86 per barrel on Thursday. West Texas Intermediate, the US gauge, closed 3.87 per cent higher at $61.45 per barrel.