Oil stable as investors study supply outlook

Oil tanks

Oil was steady as investors assessed supply challenges after the OPEC+ decision to reduce crude production, in addition to the fundamentals of the global economy and the possibility of recession.

International benchmark Brent crude was trading $85.12 a barrel, at 10:10 am Makkah time.

West Texas Intermediate (WTI) crude was at $80.76 a barrel.

The dollar index, which measures the performance of the US currency against a basket of six currencies, was at 102.09 points.

Oil recorded gains of more than 6% last week – the third consecutive weekly gain and the longest series of rises for this year.

The positive movement came after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) decided on a voluntary reduction in their production of up to 1.66 million barrels per day – including the 500,000 that Russia began cutting in March – which will come into effect in May.

At the end of last week, Moscow said that the actual cut in its production reached 700,000 barrels per day last month, compared to the 500,000 it initially announced.

Today’s trading follows the Easter holidays in Europe and the United States, with trading in US markets scheduled to resume today.