The Organization of the Petroleum Exporting Countries and its allies have agreed to implement a previously planned increase in output, the WSJ reported.
- The OPEC+ will boost output by about 450,000 barrels a day starting next month.
- Saudi Arabia will continue to unilaterally cut 1 million barrels a day.
- The oil producers in April decided to increase output by over 2 million barrels a day by the end of July.
- With the agreed upon increase, this would bring the additions in the past year to a cumulative 4 million barrels a day.
- Prior to the announcement Brent crude climbed over 2% to breach $71 a barrel making it likely to hit its highest close since May 2019.
- West Texas Intermediate futures jumped nearly 3% to over $68 a barrel, while the U.S. gauge surpassed its highest level since October 2018 on Tuesday.
- The Organization for Economic Cooperation and Development expects global output to grow 5.8% this year, the biggest expansion since 1973.