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.

Following the voluntary oil output cut decision made in conjunction with some OPEC+ member countries, including Russia, to address concerns about oversupply and stabilize oil prices, West Texas Intermediate (WTI) oil price increased to about $79.50 per barrel on Monday.

In line with market expectations, the Organisation of the Petroleum Exporting Countries and its allies, or OPEC+, opted to continue voluntary oil output cuts of 2.2 million barrels per day (bpd) into the second quarter. This move is said to be made to sustain oil prices in light of growing output outside the group and worries about the state of the world economy.

Important news for the oil market comes from Russia’s statement that it will reduce its output and exports of oil by an extra 471,000 barrels per day in the second quarter. Russia is demonstrating its commitment to assist efforts to stabilize the world oil market by lowering oil production and exports. This action may serve to mitigate some of the downward pressure exerted on oil prices.

Crude oil prices are supported by the larger geopolitical tensions and conflicts in the Middle East. The US military has verified that Yemeni Houthi terrorists sank the UK-owned ship Rubymar, which represents a worrisome increase in hostilities in the Gulf of Aden. The Houthis’ pledge to keep attacking British ships in the area highlights the unstable situation there and increases the likelihood of more maritime mishaps.