Oil prices rise on producers’ commitment to supply cuts

Oil prices gained on Tuesday, lifted by major oil producers’ commitment to the production cuts and recovering fuel demand.

Brent crude futures rose 1.4%, or 50 cents, at $36.03 per barrel. U.S. West Texas Intermediate crude futures were up 2.6%, or 86 cents, at $34.11 per barrel. 

The market mood turned positive after Russia said that its oil output fell to its targeted 8.5 million bpd for May and June under the production cut agreed by OPEC+.

OPEC+ members will meet again in June to assess the possibility of further cuts to support prices. Producers like Russia and Saudi Arabia have agreed to cut their output by 10 million bpd in May and June.

Russia’s energy ministry quoted minister Alexander Novak as saying that an increase in fuel demand will aid in cutting a global surplus of 7 million to 12 million bpd in June or July.

Meanwhile, the U.S. rig count hit a record low of 318 in the week ended May 22, according to the energy services firm Baker Hughes.