Brent crude futures jumped by about 2.7% on Tuesday to trade at $71.17 a barrel after OPEC+ agreed on gradual easing of output cuts, CNBC reports. OPEC+ agreed to boost July’s output per April’s plan to return 2.1 million barrels per day to the oil market between May and July.
OPEC+ did not discuss production policy beyond July and has scheduled another meeting on the first day of next month.
West Texas Intermediate also recorded gains of at least 3% to trade at $68.65 a barrel, the highest in two years.
The production agreement comes when OPEC+ seeks to balance demand amid potential higher output from Iran.
OPEC Secretary General has downplayed that Iran’s supply will shake oil markets.
Analysts say Iran’s oil production will be a test to OPEC+ even if demand rises forcing the group to change policy.
Oil futures are currently gaining. CL1! Is up 1.99%.
