OPEC+ Guarantees Crude Oil Price Recovery, Record 3-Week Loss!


Crude oil prices were steady on Friday as OPEC+ members Saudi Arabia and Russia indicated their willingness to temporarily halt production cuts.

The move is to support the price again after the market suffered losses for three consecutive weeks.

Brent crude oil futures rose 2 cents to $79.89 a barrel and West Texas Intermediate (WTI) crude rose 4 cents to $75.59 a barrel.

IG Marketing Strategist, Yeap Jun Rong said oil prices managed to regain some positive positions after the assurance statement by OPEC+ regarding the latest supply.

Previously, the Organization of the Petroleum Exporting Countries and its allies agreed to extend production cuts until 2025 but gave room to some of the group's countries.

Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman said on Thursday OPEC+ could temporarily halt or reverse voluntary production increases if the market is not strong enough.

The European Central Bank (ECB) set its first interest rate cut since 2019 on Thursday and analysts expect the Federal Reserve (Fed) to act similarly which could boost oil demand.

May's Non-Farm Payroll (NFP) data to be published on Friday will give more clues about expectations during the Fed's rate cuts this year.

In addition, China, which is one of the world's largest crude oil importers of 46.97 million metric tons of crude oil in May, will await official data from customs on Friday.