Brent and WTI prices up 4-6%

Brent and WTI prices up 4-6%

The price of futures contracts of Brent crude oil for June 2020 delivery climbed by 4.4% on London's ICE on Monday to $32.85 per barrel, according to the trading data as of 3:44 a.m. Moscow time.

WTI futures are up by 6.8% to $24.31 per barrel, TASS reported.

A reported surge in oil prices follows a videoconference meeting of the OPEC+ member states on Sunday that ended with an agreement on oil production cuts. The new deal envisages an aggregate reduction in oil production by 9.7 million barrels a day in May-June, by eight million barrels a day in July-December, and further reduction by six million barrels a day between January 2021 and April 2022.

Russia and Saudi Arabia will cut their daily oil output by 2.5 million barrels each from the level of 11 million barrels. Other nations will decrease production by 23% on the October 2018 level. Mexico, which refused to accept a quota of 400,000 barrels a day, will cut production by 100,000 barrels. The remaining 300,000 barrels will be compensated by the United States, which has committed to cut daily production by 250,000 barrels a day. The deal is subject to revision in December 2021.

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