By: Mahmoud Gamal
Mubasher: Oil prices rose on Monday on the back of OPEC and non-OPEC oil producers’ deal to cut oil for the first time since 2001, according to capital market analysts.
Brent Crude futures, the global benchmark price, rose 4.82% or $2.3 by 3:50am GMT to reach $56.65, its highest level since December 2015.
US West Texas Intermediate (WTI) crude futures went up $2.46 or 4.78% to stand at $53.95.
The OPEC agreement reached in Vienna will continue to support oil prices, commodity market analyst Ahmed Karam told Mubasher, adding that Russia and Saudi Arabia pledged to cut oil output.
Russia has agreed to cut production by 300,000 barrels per day (bpd), the country’s Minister of Energy Alexander Novak said on Saturday.
The Kingdom informed its customers in Europe and US on Friday to cut oil supplies as of January.
The deal will help many countries, especially in the Gulf region, to ease pressures on their budgets, the analyst explained.
Oil prices are expected to reach the levels of $60-62 per barrel, Karam noted.
Translated by: Julian Nabil
