ANKARA, May 3 — Oil prices increased today over expectations that the Organisation of the Petroleum Exporting Countries (Opec) and its allies, known as Opec+, would continue production cuts, reported Anadolu.
International benchmark Brent crude traded at US$84.02 (RM398) per barrel at 10.16am local time (0716GMT), an increase of 0.42 per cent from the closing price of US$83.67 per barrel in the previous trading session.
American benchmark West Texas Intermediate traded at US$79.28 per barrel at the same time, a 0.42 per cent rise from the previous session that closed at US$78.95 per barrel.
Oil prices plummeted to the lowest levels in the past seven weeks, with reduced supply risks in the Middle East due to cease-fire negotiations between Israel and Hamas, while projected demand dwindled over concerns about the US economy after the US Federal Reserve left the interest rate policy unchanged.
Higher prices were, however, bolstered by the possibility that the Opec+ group, led by Saudi Arabia and Russia, would continue to reduce production.
The price declines come just weeks ahead of the Opec+ group meeting on June 1. Experts predict that if oil demand does not improve by June, Opec, which needs higher prices, could agree to sustain its voluntary production cuts of 2.2 million barrels per day. — Bernama-Anadolu
