The Organization of the Petroleum Exporting Countries (OPEC) and its ally, OPEC+ reached an agreement to gradually ease its oil production cuts starting in May.
Saudi Arabia plans to reduce its voluntary cuts to 1 million barrels a day, by increasing its production by 250,000 barrels a day in May, 350,000 in June and 400,000 in July.
Meanwhile, other OPEC+ member countries will increase production in stages by 350,000 barrels per day in May and June and 450,000 in July.
Although OPEC+ will start increasing production next month, the crude oil market seems to be receiving it positively.
At the start of the Asian session, US WTI jumped 3.5% to $ 61.24 a barrel, while Brent crude oil trading was up 3% at $ 64.65 a barrel.
The crude oil market welcomed the news after OPEC+ stated that its decision was a conservative move that could be reversed at the next meeting and they also expected global demand to increase.
The rise was also supported by weak US dollar trading, making crude oil cheaper for holders of other major currencies.
