The price trajectory of the June futures contracts for North Sea Brent crude moved higher, surpassing the $84 per barrel mark as observed in London ICE data. Traders watched tight supply cues mix with expectations for producer restraint, keeping Brent on a firmer footing into early trade while market sentiment reflected cautious optimism about demand stabilization and ongoing output discipline. (Reuters attribution)
At 7:35 a.m. Moscow time, Brent for June delivery traded near the $84.14 per barrel level, confirming a continuation of the rally that has persisted through the session as buyers priced in the likelihood of continued supply restraint and rebalancing dynamics across major consuming regions. The move underscores how geopolitical risk, production policies, and inventory trends are shaping near term pricing. (Reuters attribution)
Meanwhile, the cost of Texas Western Texas Intermediate crude for May delivery edged up to about $79.73 per barrel, extending a period of firmness in the U S oil complex. Market participants noted that while price gains were modest relative to earlier spikes, the continuation of supply discipline and seasonal demand patterns were supportive factors. (Reuters attribution)
Earlier, the Saudi state news agency reported that Riyadh will voluntarily cut oil production by 500,000 barrels per day starting in May and continuing through the end of 2023, a move aimed at providing market stability in a period of uncertain demand. The announcement signaled cooperation among major producers to curb excess supply and support price levels while governments weigh the resilience of global energy markets. (Saudi SPA report, Reuters attribution)
In related remarks, Suhail bin Mohammed Al Mazrui, the United Arab Emirates Minister of Energy and Infrastructure, indicated a voluntary reduction of 144,000 barrels per day by year end, aligning with broader regional efforts to balance output with demand expectations. The UAE contribution reflects an approach that favors gradual, predictable cuts to avoid destabilizing the market while maintaining resilience in energy sectors. (UAE energy ministry statement, Reuters attribution)
On April 2, Russian Deputy Prime Minister Alexander Novak announced that the voluntary production cut had been extended by 500,000 barrels per day from February’s average to the end of 2023, reinforcing the theme of coordinated restraint among key oil producers. This extension highlights how policy signals from major producers can influence price trajectories and market sentiment over the medium term. (Novak announcement, Reuters attribution)
As reported by Reuters, the decision to extend voluntary production reductions through the end of the year was confirmed as a collaborative step involving Kuwait, Oman, and Iraq, illustrating a regional commitment to stabilizing markets and supporting prices during a period of demand uncertainty. The aggregation of these cuts contributes to a broader narrative of supply management among Gulf producers and neighboring states. (Reuters attribution)