Oil Prices Rise Due to OPEC+ Output Cuts

Oil prices are higher after a bullish US crude stocks report, and OPEC+ keeps output cuts in place, as expected. Following its monitoring committee meeting, OPEC says it welcomed the intention of Iraq and Kazakhstan to compensate for recent overproduction, and that other participating countries that have overproduced would submit compensation plans by the end of the month. Moreover, concerns about escalating conflict in the Middle East with ongoing attacks on energy infrastructure in Russia and Ukraine are further strengthening prices.

While oil prices have experienced volatility due to recent market events, their future direction hinges on sustained fundamental factors. If prevailing market conditions persist, oil prices are expected to reach the 88 level soon.