Oil Prices Rise After OPEC+ Maintains Output Policy

Positive Decision by OPEC+ Boosts Oil Prices

Oil prices increased on Friday as OPEC+ chose to keep its oil output policy unchanged. However, benchmarks were on track for weekly losses due to unverified reports of a ceasefire between Israel and Hamas.

Futures Show Positive Movement

Oil futures rose, with Brent crude climbing 44 cents to $79.14 a barrel and U.S. West Texas Intermediate crude gaining 36 cents to $74.18 a barrel.

Unchanged Output Policy by OPEC+

According to two OPEC+ sources, the group decided to maintain its oil output policy and will revisit the voluntary oil production cuts in March.

Impact of OPEC+ Output Cuts

OPEC+ has kept output cuts of 2.2 million barrels per day in place for the first quarter, contributing to a tight supply in the market.

Analysis by ANZ Research

ANZ Research analysts stated that the production cuts are expected to keep supply tight in the first quarter, while non-OPEC production increases are set to normalize.

Support from U.S. Federal Reserve

The U.S. Federal Reserve’s decision to maintain the benchmark overnight interest rate and Chair Jerome Powell’s comments on lower interest rates also supported oil prices.

Weekly Losses and Geopolitical Tensions

Oil prices faced weekly losses of about 5% due to reports of a ceasefire between Israel and Hamas. Geopolitical tensions continue to have an impact on market sentiment.

Impact of Recent Tensions

Recent tensions, including reports of Houthi attacks and naval forces targeting a British merchant vessel in the Red Sea, have added to market uncertainty.

By Jeslyn Lerh