The Organization of the Petroleum Exporting Countries (OPEC) and allies, known as OPEC+, last week announced an extra output cut of 1.16 million barrels per day from May for the rest of the year.
The jump in price comes hours after Saudi Arabia and other major oil producers announced surprise cuts totalling 1.15 million barrels per day from May until the end of the year.
Saudi Arabia and other major oil producers, including Russia and UAE, announced surprise cuts totalling 1.15 million barrels per day from May until the end of the year, a move that could raise prices worldwide.
The cap is to be reviewed every two months, with the option to modify it according to price changes.
Major oil-producing countries led by Saudi Arabia and Russia agree to maintain their current output levels at a meeting, ahead of fresh sanctions against Moscow coming into force, sources say.
The milestone summit is set to involve face-to-face exchanges between Chinese and Arab leaders with the possibility of attendance by President Xi Jinping.
Analysts warn a recession looms in the West from inflation and subsequent interest rate hikes, as well as food and oil supplies being affected by Russia-Ukraine conflict.
Islamabad says it stands with Riyadh "in the wake of statements made against the kingdom", and hails the oil cartel's decision to cut production by two million barrels a day.
President Biden's planned announcement to draw down from strategic reserves comes after Saudi Arabia-led cartel's decision had Washington saying Riyadh sided with Moscow and pledging consequences for supply cuts of 2 million barrels a day.
Oil prices are expected to remain volatile as production cuts by OPEC+ will tighten supplies ahead of the EU embargo on Russian oil, while a strong US dollar and further interest rate increases from the Fed limit price gains.
The energy ministry in Oman says that the decision by OPEC to cut oil production by 2 million barrels per day was necessary to reassure the market and stabilise it.
The two leaders discussed energy markets, food security, the situation in Libya, Syria and the Iran nuclear talks.
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