The crude oil market rose more than $1 a barrel yesterday (Tuesday) as OPEC+ is considering extending voluntary oil production cuts in the second quarter to provide additional support.
Brent crude futures rose $1.12 (1.4%) to $83.65. Meanwhile, West Texas Intermediate (WTI) crude oil increased by $1.29 (1.7%) to $78.87.
The Organization of the Petroleum Exporting Countries and its allies led by Russia (OPEC+) agreed in November to begin voluntary cuts amounting to about 2.2 million barrels per day in the first quarter of this year including Saudi Arabia.
They could also keep the additional cuts until the end of the year.
According to Senior Vice President of BOK Financial, Dennis Kissler said OPEC is moving crude oil prices around $85 per barrel. They are expected to reduce production until the end of this year.
Among the main supporters of supply prices is the Israel-Hamas conflict in which Qatar is the mediator. Global sentiment is now voicing warnings about the implementation of a ceasefire in Gaza.
US President Joe Biden said he believed a ceasefire could be reached in less than a week before the arrival of Ramadan.
The global crude oil market is expected to be relatively stable this year at around $80 per barrel.
Both oil benchmarks settled up more than 1% on Monday after falling two to three percent from the previous week. Markets are taking into account the greater possibility that interest rate cuts may take longer than previously expected.
