Oil markets worldwide moved higher after several OPEC+ members, including Russia, signaled cuts to their crude output. The rally followed announcements that producers would trim supply, with traders reacting to the prospect of tighter markets and the potential impact on global inventories.
In early market action, May futures for West Texas Intermediate (WTI) climbed by more than 7 percent, trading around the $81 per barrel mark. Likewise, June futures for Brent crude moved upward, approaching the mid-$80s per barrel range. These moves reflect a market recalibration in response to the production restraint signals from key members and the expectation that supply discipline could persist for a period of time.
Saudi Arabia reportedly volunteered to reduce production further from May through year-end, signaling a willingness to contribute to tighter supply and to steer prices higher. Such steps are seen as part of broader efforts to balance the market in the face of demand recovery and ongoing geopolitical considerations that influence production and export strategies.
In another notable development, a communication from Moscow indicated that Deputy Prime Minister Alexander Novak would oversee a voluntary cut of oil output by 500,000 barrels per day, commencing from February averages and running through the end of 2023. This move aligns with Russia’s ongoing engagement with the OPEC+ framework and reinforces the pattern of compliance among major producers in efforts to manage price stability and revenue levels.
Earlier discussions at an OPEC+ committee meeting highlighted hesitancy around altering the current oil production plan. The consensus at that gathering suggested that, for now, a change in the alliance’s policy toward production seems unlikely, underscoring the delicate balance members seek between preserving market share, supporting prices, and maintaining fiscal objectives. Market observers note that any shifts will be watched closely for signals about the group’s longer-term strategy and how it might respond to evolving demand conditions and geopolitical factors.