Oil futures rebounded from the previous day’s selloff as the OPEC and non-OPEC ministerial meeting ended with agreement to keep quotas in place through 2026.
The meeting came ahead of Saturday’s OPEC+ meeting, in which the eight countries that made additional voluntary cuts are expected to return another 411,000 barrels a day in July.
The decision to create a new mechanism to define production baselines from 2027 on “aims to mitigate internal tensions and enhance the effectiveness of its production cut policies, which are crucial for maintaining stability in the global crude oil market,” Antonio di Giacomo of XS.com says in a note.
The market “reacted positively to these announcements, interpreting the agreements as a sign of cohesion and control by the cartel,” he adds.
WTI settles up 1.6% at $61.84 a barrel, and Brent rises 1.3% to $64.90 a barrel.