Oil prices rally on OPEC+ decision, supply concerns

Oil prices rose on May 5 after OPEC+ decided to maintain its supply policy and the European Union proposed banning oil imports from Russia.

Following the Joint Ministerial Monitoring Committee’s (JMMC) meeting, 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.

OPEC’s Secretary General Mohammed Barkindo warned against a decline in China's demand for oil, as this may lead to price volatility.

He noted that it would be difficult to compensate for Russian supplies if they were interrupted due to the sanctions and geopolitical tensions.

Brent crude futures for July delivery rose by 0.7%, or 76 cents, to reach $110.90 a barrel.

Meanwhile, NYMEX crude for June delivery increased by 0.4%, or 45 cents, to $108.26 a barrel.