Oil continues to rally after OPEC+ meet, Brent nears $112

Oil drilling rigs

Oil prices continued to rally today, May 5, on the back of the OPEC’s approval of a modest increase in production in June.

Following the Joint Ministerial Monitoring Committee’s (JMMC) meeting earlier today, the group agreed to increase production by 432,000 barrels per day in June, in line with the OPEC-led oil output pact reached last year, according to a statement.

The decision came on day after the European Union submitted a proposal to ban the import of oil and petroleum products from Russia within six months, as part of a new package of tough sanctions imposed on Moscow in the wake of the invasion of Ukraine.

OPEC Secretary-General Mohammad Barkindo said that it was not possible for other producers to replace Russian supply, as the group faced continued demands to raise output. He also warned against weakened oil demand from China, which could result in price fluctuations.

Brent crude was trading up 1.4% at $111.70 per barrel, at 3:20 pm Makkah time, after reaching $112.14 a barrel immediately after the announcement of the OPEC's decision.

NYMEX crude contracts for June delivery also rose 1.2% to $109.13 a barrel.