Oil prices experienced an increase on Friday following the joint announcement from Saudi Arabia and Russia, two of the world’s leading oil producers, advocating for further reductions in output over the next few months.
These countries have decided to voluntarily curtail their production levels in order to restrict global crude supplies. During a recent meeting of the Organization of the Petroleum Exporting Countries (OPEC), members reached an agreement to limit output by 2.2 million barrels per day. However, some nations were pushing for an increase in their allocated quotas.
The international benchmark, Brent crude, saw a 2% surge, reaching $75.55 per barrel. Likewise, West Texas Intermediate, the U.S. standard, also rose by 2% and settled at $70.71 per barrel.
While Friday’s gains were positive, it wasn’t enough to prevent a weekly loss for oil, which has witnessed a decline of around 5% over the past five days. There is growing concern about the weakening global economy, which has resulted in reduced energy demand due to almost two years of consecutive interest rate hikes. In addition, the United States, not being a part of OPEC, has managed to ramp up its production to a record-breaking 13 million barrels per day.
Despite these challenges, the oil market continues to adapt and respond to dynamic changes. As industry stakeholders closely monitor these developments, it remains critical for major producers to evaluate and coordinate their efforts accordingly.