Oil prices jumped 2% on Monday after OPEC+ nations held their output targets steady ahead of a European Union ban and a price cap kicking in on Russian crude. At the same time, in a positive sign for fuel demand, more Chinese cities eased COVID-19 curbs over the weekend.
Brent crude futures rose $1.84, or 2.2%, to $87.41 a barrel at 0142 GMT, while U.S. West Texas Intermediate (WTI) crude futures gained $1.64, or 2%, to $81.62 a barrel.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, together called OPEC+, agreed on Sunday to stick to their October plan to cut output by 2 million barrels per day (bpd) from November through 2023.
Analysts said the OPEC+ decision was expected as major producers wait to see the impact of the EU import ban and Group of Seven (G7) $60-a-barrel price cap on seaborne Russian oil, with Russia threatening to cut supply to any country adhering to the cap. “The decision reflects the unpredictability of supply and demand in coming months,” ANZ Research analysts said in a client note.
