Oil’s Rebound Suggests Output Cuts Are Working

摘要

Oil has responded swiftly and positively to the combination of Opec-plus production cuts and market-driven cuts by other producers that were supported by additional cuts announced last week by Saudi Arabia and its Mideast Gulf allies. The physical market has tightened and prices have risen ahead of the next meeting of the 23- member Opec-plus alliance in June. Benchmark Brent crude futures closed at $34.65 per barrel Tuesday, significantly higher than April’s drop below $20/bbl. The value of Oman crude on the Dubai Mercantile Exchange has also doubled since the Opec-plus cuts were agreed.