Oil prices increased on Thursday, driven by worries of lower supply as major producers maintained output cuts and signs of robust economic growth in the United States, the world’s largest oil consumer.
Brent futures for June climbed 31 cents to $89.66 a barrel, while U.S. West Texas Intermediate (WTI) futures for May rose 30 cents to $85.73 a barrel at 0443 GMT.
The Organization of Petroleum Exporting Countries and its allies (OPEC+), including Russia, convened on Wednesday and opted to retain oil supply policy unchanged, urging some countries to bolster compliance with output reductions. The group disclosed plans for certain members to offset oversupply in the first quarter and announced Russia’s shift towards output cuts rather than export curbs.
Analysts at ING attributed the ongoing rise in oil prices to the decision to maintain OPEC+ output policy. Both the June Brent contract and the May WTI contract have witnessed gains over the past four days, reaching their highest levels since October at the close of Wednesday’s trading session.
Despite the positive momentum, ING analysts noted that Brent faced resistance at the $90 per barrel mark, with prices yet to surpass this threshold.
