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WTI extends gains to near $79.50 as OPEC+ decided to extend oil output cuts of 2.2M bpd

Source Fxstreet

WTI price edges higher on extension of oil cuts by OPEC+.
OPEC+ decided to extend oil output cuts of 2.2M million bpd into the Q2.
Russia's announced to cut oil output and exports by an additional 471,000 bpd.
Iran-led Houthis vowed to continue targeting British ships following the sinking of the UK vessel Rubymar.

West Texas Intermediate (WTI) oil price edges higher to near $79.50 per barrel on Monday, following the decision of voluntary oil output cut, made in coordination with some OPEC+ participating countries, including Russia, aiming at addressing concerns about oversupply and stabilizing oil prices.

The Organization of the Petroleum Exporting Countries and its allies (OPEC+) decided to extend voluntary oil output cuts of 2.2 million barrels per day (bpd) into the second quarter, aligning with market expectations. This decision is attributed to support the oil prices amid global economic concerns and rising output outside the group.

Russia's announcement to cut its oil output and exports by an additional 471,000 bpd in the second quarter is significant news for the oil market. By reducing oil output and exports, Russia is signaling its commitment to supporting efforts to balance the global oil market. This move could potentially help alleviate some of the downward pressure on oil prices.

The broader geopolitical tensions and conflicts in the Middle East is underpinning the Crude oil prices. The sinking of the United Kingdom (UK) owned vessel Rubymar by Yemeni Houthi militants, as confirmed by the United States (US) military, marks a concerning escalation in tensions in the Gulf of Aden. The Houthis' vow to continue targeting British ships in the region raises the risk of further maritime incidents and underscores the volatile situation in the area.

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