Oil prices jumped 2% today, Monday OPEC+ countries kept their production targets Before the European Union banned Russian crude and put a ceiling on it, which takes effect from today.
Meanwhile, in a positive sign for fuel demand, more Chinese cities eased anti-COVID-19 restrictions over the weekend.
Brent crude futures rose $1.84, or 2.2%, to $41.87 a barrel at 01:42 GMT, while West Texas Intermediate crude futures rose $1.64, or 2%, to $62.81 a barrel.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, called the “OPEC +” group, agreed on Sunday to stick to the agreement reached in October to cut production by 2 million barrels per day from November until the end of 2023.
Analysts stated that the “OPEC +” decision was expected, with major producers waiting to know the impact of the European Union ban on imports and the decision of the Group of Seven industrialized countries to set a ceiling for the price of Russian oil transported by sea at $ 60 a barrel, with Russia threatening to cut supplies to any country that adheres to this. maximum.
“The decision indicates the unpredictability of supply and demand in the coming months,” analysts from ANZ Research said in a note to clients.
Wood Mackenzie Vice President Anne-Louise Hettle said in a note that the European Union would have to replace Russian crude by buying oil from the Middle East, West Africa and the United States, which should put a floor in oil prices at least in the near term.