Oil futures continued to rise after the decision of the OPEC + alliance to cut production by two million barrels per day.
Brent crude rose two dollars to $93.88 a barrel.
The OPEC+ alliance agreed to the biggest production cut since the Covid-19 pandemic at a meeting in Vienna on Wednesday, curtailing supplies in an already tight market despite pressure from the US and other countries to increase production.
And cuts in OPEC+ production could lead to a recovery in oil prices, which have fallen to about $90 from $120 three months ago on fears of a global economic downturn, rising US interest rates and a stronger dollar.
An informed source said the United States is urging the Organization of the Petroleum Exporting Countries (OPEC) not to continue cutting production, saying that underlying market factors do not support the cut.
It is still unclear, the sources said, whether the cuts could include additional voluntary cuts by members like Saudi Arabia, or if they could include actual production shortfalls in producing countries.
Source: El Nashra