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OPEC+’s Extended Output Cuts Are Causing Crude Oil Prices To Rise

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(CTN News) – There were high expectations on Friday that OPEC and its allies, known as OPEC+, would continue to cut production, leading to a rise in oil prices as investors expected that OPEC and its allies would continue to cut production.

There was an increase of 0.42% in the price of international benchmark Brent crude at 8.16 am (0716GMT), an increase of 0.42% compared to the closing price of $83.67 per barrel in the previous trading session, which was reported as an increase of 0.42%.

Meanwhile, the American benchmark West Texas Intermediate oil, which makes up the bulk of the U.S. market, traded at $79.28 per barrel at the same time, up 0.42% over the previous session’s closing price of $78.95 a barrel.

There has been a sharp decline in oil prices over the past seven weeks as a result of reduced supply risks in the Middle East as a result of cease-fire negotiations between Israel and Hamas, while projected demand has dwindled due to concerns regarding the US economy after the Federal Reserve has left their policy unchanged regarding interest rates.

A strong factor which played a role in raising prices, however, was the possibility that the OPEC+ group, which is led by Saudi Arabia and Russia, would in fact continue to reduce its production in the future.

It is noteworthy to note that, despite the price declines, the OPEC+ group meeting is scheduled for June 1, just weeks before the declines actually occur.

According to experts, if oil demand does not improve by June, OPEC, which needs higher oil prices to maintain its voluntary production cuts of 2.2 million barrels per day, may agree to keep its voluntary production cuts if there is no improvement in oil demand.

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Salman Ahmad is a seasoned writer for CTN News, bringing a wealth of experience and expertise to the platform. With a knack for concise yet impactful storytelling, he crafts articles that captivate readers and provide valuable insights. Ahmad's writing style strikes a balance between casual and professional, making complex topics accessible without compromising depth.

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