Baku: Oil prices experienced an upward trajectory, climbing more than $1 per barrel on Monday as the OPEC+ consortium decided to maintain its current production increase strategy for July. This decision was a relief to market players who were bracing for a more significant output boost.
According to Azeri-Press News Agency, Brent crude futures rose by $1.34, or 2.13 percent, reaching $64.12 a barrel by 03:46 GMT, surpassing $64.20 in subsequent trading. Similarly, U.S. West Texas Intermediate crude advanced to $62.31 a barrel, marking a gain of $1.52, or 2.5 percent, following a minor decline in the preceding session, now trading above $62.50. Both benchmarks had seen declines exceeding 1 percent over the previous week.
In an effort to stabilize the oil market, eight OPEC+ nations announced a phased increase in production starting in July, while reaffirming their adherence to existing agreements. The meeting, conducted via video conference, included representatives from Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and the Sultanate of Oman.
The coalition attributed their decision to robust market fundamentals, reduced global oil inventories, and an optimistic outlook for the global economy.