Oil prices rose during Tuesday’s trading, supported by an unexpected commitment by Saudi Arabia to cut deeper crude production over the next month to reduce supply glut in the oil market.
As of 10:10 GMT, West Texas Intermediate (WTI) crude futures traded at $25.07 per barrel, while the highest level recorded during the session was at $25.09.
Brent crude reached $30.13 a barrel, while the highest level recorded during the session was at $30.25.
Saudi Arabia pledged yesterday to cut its oil production by an additional 1 million barrels per day in June, reducing total production to 7.5 million barrels per day, down about 40 percent from April levels.
The UAE and Kuwait have committed to an additional 180,000 barrels per day (bpd) cut in total, according to Reuters.
This month, OPEC and non-OPEC crude producers began implementing a historic cut of just under 10 million barrels per day in oil production levels.
It should be noted that crude markets have seen a strong glut in the oil supply recently against the backdrop of the Corona pandemic and the implications of its containment that led to the collapse of fuel demand.
The reductions, along with the world's largest economies easing of the restrictions imposed to prevent the spread of the virus, are expected to ease the pressure on storage capacity.
However, the market fears a second wave of COVID-19 infections that stimulate renewed closures, which would lead to more and more damage to global economies.
Investors are paying attention to OPEC's monthly report on production levels in April, which is scheduled for Wednesday.
Meanwhile, the dollar
index, which measures the performance of six major currencies against the US
dollar, slumped 0.14 percent at 100.12.