New York, April 14 (IANS) Oil prices settled mixed as market participants digested a highly anticipated decision by major oil producers on output cuts.
On Monday, the West Texas Intermediate for May delivery decreased US $0.35 to settle at $22.41 a barrel on the New York Mercantile Exchange, while Brent crude for June delivery rose $0.26 to close at $31.74 a barrel on the London ICE Futures Exchange.
The Organisation of the Petroleum Exporting Countries (OPEC) and its allies led by Russia, a group known as OPEC+, agreed on Sunday to reduce output by 9.7 million barrels per day (bpd) for May and June after four days of talks.
According to an OPEC statement on the deal, from July through the end of 2020, the cut will decrease to 7.7 million bpd, and will then be followed by an adjustment of 5.8 million bpd for another 16 months till the end of April 2022.
US President Donald Trump tweeted his delight and congratulations on Sunday, calling it a “great deal for all,” which “will save hundreds of thousands of energy jobs in the United States.”
Experts and various institutions had warned that oil demand would plunge this year due to the COVID-19 pandemic.