Oil prices up over prospect of extended OPEC+ output cuts

Oil prices increased on Friday over expectations that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, would continue production cuts.

International benchmark Brent crude traded at $84.02 per barrel at 10.16 a.m. local time (0716 GMT), an increase of 0.42% from the closing price of $83.67 per barrel in the previous trading session.

American benchmark West Texas Intermediate (WTI) traded at $79.28 per barrel at the same time, a 0.42% rise from the previous session that closed at $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 (Fed) 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.

• Organization of the Petroleum Exporting Countries (OPEC)