RIYADH: Oil prices rose for a fourth session on Thursday, with Brent at a three-week high, after the Organization of the Petroleum Exporting Countries and its allies, including Russia, known as OPEC+, agreed to cut output by about 2 million barrels per day, the largest reduction since 2020.
Brent crude futures for December settlement rose 12 cents, or 0.13 percent, to $93.49 per barrel by 08.30 a.m Saudi time, after settling 1.7 percent higher in the previous session.
US West Texas Intermediate crude futures for November delivery gained 11 cents, or 0.13 percent, to $87.87 per barrel.
OPEC+ works to serve the global economy not threaten it: Kuwait
Kuwait’s acting oil minister Mohammed Al-Fares said on Wednesday that the OPEC+ decision to cut production by 2 million barrels per day will have positive ramifications on the oil markets, the state news agency reported.
“The decision places a big responsibility on us to follow up on market developments in case supply or output increases,” Al-Fares told the agency in an interview.
He asserted OPEC+ works to serve the global economy, not threaten it.
Russia may cut oil output if price caps introduced
Russian Deputy Prime Minister Alexander Novak said on Wednesday that Russia may cut oil production in order to offset the negative effects of price caps imposed by the West.
Novak was also cited by the TASS news agency as saying that Russia will produce 530 million tons of oil, equivalent to 10.6 million bpd in 2022 and 490 million tons in 2023.
He said Russia was ready to supply gas to Europe via one line of the Nord Stream 2 pipeline if necessary.
(With input from Reuters)
