After OPEC+ Decision, Oil Prices Rise

Oil prices rose on Monday after Saudi Arabia, the world's largest crude exporter, pledged to cut production by another one million barrels per day starting in July to tackle macroeconomic challenges that led to market stagnation. Brent crude closed up 58 cents at $76.71 per barrel after reaching a session high of $78.73. West Texas Intermediate crude rose 41 cents to $72.15 after hitting an intraday high of $75.06. The Saudi Ministry of Energy announced that the kingdom's production would decline to nine million barrels per day in July from about ten million in May. This voluntary cut, the largest implemented by Saudi Arabia in years, adds to a broader agreement made by the Organization of the Petroleum Exporting Countries (OPEC) and allies, including Russia, to limit supplies until 2024 as OPEC+ seeks to bolster falling oil prices. Fatih Birol, the head of the International Energy Agency, stated that the chances of rising oil prices have significantly increased following the new OPEC+ agreement. OPEC+ pumps about 40% of the world's crude and has reduced targeted production by a total of 3.66 million barrels per day, equivalent to 3.6% of global demand.