The price of Texas intermediate oil (WTI) rose 6.59% this Monday and closed at US$ 80.66 a barrel, a strong rise caused by the OPEC+ cuts announced last weekend and that join an upward trend already observed last week.
At the close of business in New York, a barrel of WTI for May delivery was up $4.99 compared to Friday.
In London, the behavior of the Brent barrel has been similar, and today it closed at US$ 84.93, which represents 6.47% more compared to the last day, and also in its case a direct reaction to the decision from OPEC+.
The Organization of Petroleum Exporting Countries and its partners, led by Russia, have announced a voluntary drop in pumping of 1.66 million barrels per day, which represents 1.1% of global production, a cut that Saudi Arabia will lead by withdrawing half a million barrels per day From the market.
“The price increases that we anticipate for the rest of the year as a result of these voluntary cuts may boost global inflation, triggering a more aggressive stance on interest rates by central banks around the world”said Jorge León, vice president of Rystad Energy.
Along the same lines, CMC Markets analyst Michael Hewson indicated that the OPEC+ measure “creates difficulties above all for central banks”, concerned both about persistent inflation and the effects that interest rates above current levels.
On the other hand, natural gas futures contracts for May lost $0.1 to $2.11, and gasoline futures due the same month gained $0.07 to $2.7585.
I am John Casanova. I am an author at 24 news recorder and mostly cover economy news. I have a great interest in the stock market and have been writing about it for many years. I am also interested in real estate and have written several articles on the subject. I am a very experienced investor and have a lot of knowledge to share with others.