Oil prices rose on March 4 after OPEC+ members agreed to extend voluntary oil output cuts of 2.2 MMbbl/d into the second quarter, largely in line with market expectations.
Brent futures was $0.28, or 0.3% higher, at $83.83/ bbl at 0134 GMT, while the U.S. WTI rose $0.20, or 0.3%, to $80.17/ bbl.
The output cuts by OPEC and its allies (OPEC+) are expected to cushion the market amid global economic concerns and rising output outside the group, with Russia's announcement surprising some analysts.
Russia will cut its oil output and exports by an additional 471,000 bbl/d in the second quarter, in coordination with some OPEC+ participating countries, its Deputy Prime Minister Alexander Novak said on March 3.
"Signs of tightness in the physical market continue to push crude oil higher. Output cuts by the OPEC+ alliance continue to reduce supply as the market worries about the renewed tensions in the Middle East," ANZ analysts said in a note on March 4.
Rising geopolitical tensions due to the Israel-Hamas conflict and Houthi attacks on Red Sea shipping have supported oil prices in 2024, although concern about economic growth has weighed.
Yemen's Iran-backed Houthis vowed on Sunday to continue targeting British ships in the Gulf of Aden following the sinking of U.K.-owned vessel Rubymar.
In some of the strongest comments by a senior U.S. leader, U.S. Vice President Kamala Harris on March 3 demanded Palestinian militant group Hamas agree to an immediate six-week ceasefire while forcefully urging Israel to do more to boost aid deliveries into Gaza.
Washington has insisted the ceasefire deal is close and has been pushing to put in place a truce by the start of Ramadan, a week away. A U.S. official on Saturday said Israel has agreed on a framework deal.
Recommended Reading
Kimmeridge Fast Forwards on SilverBow with Takeover Bid
2024-03-13 - Investment firm Kimmeridge Energy Management, which first asked for additional SilverBow Resources board seats, has followed up with a buyout offer. A deal would make a nearly 1 Bcfe/d Eagle Ford pureplay.
Laredo Oil Subsidiary, Erehwon Enter Into Drilling Agreement with Texakoma
2024-03-14 - The agreement with Lustre Oil and Erehwon Oil & Gas would allow Texakoma to participate in the development of 7,375 net acres of mineral rights in Valley County, Montana.
SLB’s ChampionX Acquisition Key to Production Recovery Market
2024-04-21 - During a quarterly earnings call, SLB CEO Olivier Le Peuch highlighted the production recovery market as a key part of the company’s growth strategy.
Oil and Gas Chain Reaction: E&P M&A Begets OFS Consolidation
2024-04-26 - Record-breaking E&P consolidation is rippling into oilfield services, with much more M&A on the way.
From Restructuring to Reinvention, Weatherford Upbeat on Upcycle
2024-02-11 - Weatherford CEO Girish Saligram charts course for growth as the company looks to enter the third year of what appears to be a long upcycle.