Oil prices rise after OPEC+ continues production cuts

by Emily Chow

SINGAPORE (Reuters) – Oil prices rose in early trading on Friday after OPEC+ decided to keep its oil production policy unchanged, recovering some of the losses suffered in the previous trading session due to unconfirmed ceasefire reports between Israel and Hamas. It was compensated.

Brent crude futures rose 50 cents, or 0.6%, to $79.20 a barrel at 0155 GMT, while U.S. West Texas Intermediate crude futures rose 40 cents, or 0.5%, to $74.22 a barrel.

Both contracts closed more than 2% lower on Thursday due to unverified ceasefire reports between Israel and Hamas. However, a Qatari official said that no ceasefire had taken place. He said Hamas had positively received the ceasefire proposal made earlier this week.

In the region, attacks by Yemen’s Houthi forces on ships in the Red Sea continue to disrupt global trade, increasing geopolitical tensions and shipping concerns. The Iran-aligned group said on Thursday that its naval forces had targeted an unidentified British merchant ship in the Red Sea.

On Thursday, two OPEC+ sources said the group has kept its oil production policy unchanged, and will decide in March whether to extend voluntary oil production cuts for the first quarter.

The Russia-led Organization of the Petroleum Exporting Countries and allies, known as OPEC+, has cut output by 2.2 million barrels per day (bpd) for the first quarter as announced in November.

ANZ Research analysts said in a Friday note that production cuts should keep supplies tight in the first quarter, non-OPEC output growth is likely to moderate and U.S. output growth in 2024 will slow to 300,000 bpd from 800,000 bpd last year. day (BPD).

Oil prices were also supported by the US Federal Reserve’s decision to keep the benchmark overnight interest rate stable…

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