During the opening of the market on Monday, oil prices rose by about $5 per barrel after OPEC+ unexpectedly announced plans to cut production further in an effort to support market stability.
By 7.39 a.m. Bangkok time, Brent crude was up $5.06, or 6.3%, to $84.95 per barrel, marking its highest opening price in a month.
West Texas Intermediate crude in the United States reached its highest level since late January, reaching $80.47 per barrel, up $4.80, or 6.3%.
On Sunday, Saudi Arabia and other OPEC+ oil producers unexpectedly announced cuts in oil supply of roughly 1.16 million barrels per day.
According to a Reuters calculation, the combined amount of these pledges brings the total volume of cutbacks by OPEC+, including Russia, to 3.66 million bpd, or 3.7% of global demand.
As a result, Goldman Sachs analysts lowered their OPEC+ production prediction for the end of 2023 by 1.1 million bpd and lifted their Brent price forecasts to $95 and $100 per barrel in 2023 and 2024, respectively.
Goldman anticipated a 7% increase in oil prices as a result of the production cut, which would increase oil income for Saudi Arabia and OPEC+.
The Biden administration stated that it thought the producers’ decision was unwise.
