OPEC+ production cuts and geopolitical tensions drive crude prices higher as supply constraints tighten global markets.
Oil prices climbed as OPEC+ extended production cuts, reducing global supply by an estimated 2 million barrels per day. The move aims to stabilize prices amid sluggish demand growth forecasts for 2024.
Analysts noted that prior cuts in Q4 2023 had already lifted Brent crude above 85 USD per barrel, with current levels nearing 90 USD. Market participants are monitoring Middle East tensions for further upside risks.
Equity markets showed muted reaction, while energy sector stocks edged higher in early trading.