Setback to OPEC
In an unexpected move, Angola has decided to part ways with the Organisation of Petroleum Exporting Countries (OPEC), sending ripples through the intricate web of global oil alliances.
Prices of Brent crude and WTI increased after the OPEC+ deal of reducing output came into effect on Friday.
The increase in crude oil prices comes a month after the oil market witnessed a dramatic crash, leaving the US oil rates in negative in oil rates due to concerns of decline in the storage capacity as supply continues and demand remains nearly standstill.
The benchmark Brent crude oil is at around $27 per barrel. The June contract on the Intercontinental Exchange (ICE) is trading at $26.89 per barrel, higher by 1.55 per cent.
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The June delivery contract of WTI crude on the NYMEX is currently trading at $19.32 per barrel, higher by 2.55 per cent.
In April, OPEC and its allies led by Russia agreed to reduce output by 9.7 million barrels per day (bpd) for May and June.
Further, lower-than-expected rise in crude supply in the US along with signs of resumption of gasoline demand has also supported the prices.
Last week in an unprecedented price movement, the WTI crude fell below zero for the first time ever.
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