Oil prices rose during Monday’s trading after OPEC and its allies agreed on Sunday on a historic agreement to cut oil production to stabilize prices.
As of 07:44 GMT, Brent crude reached $31.82 a barrel, while the highest level recorded during the session was at $33.25.
West Texas Intermediate (WTI) crude futures traded at $23.23 per barrel, while the highest level recorded during the session was at 24.56.
The rise in oil prices came after OPEC+ announced a reduction in oil production by 9.7 million barrels per day effective from May 1 until the end of June.
The United States, Brazil and Canada are also contributing to the agreement, with an additional reduction of 3.7 million barrels per day.
Producers succeeded in reaching an agreement, the biggest in history, in an effort to support crude prices amid oversupply and declining global demand.
The OPEC+ alliance reached a preliminary agreement at the end of last week that included a 10 million barrel-a-day production cut, but Mexico's opposition to participation prevented the final agreement from being announced.
According to the Saudi energy minister that Saudi Arabia, Kuwait and the UAE have volunteered larger-than-expected cuts to actually reach 12.5 million barrels per day from current production levels.
Meanwhile, the dollar index, which measures the performance of six major currencies against the US dollar, slumped 0.24 percent at 99.25.
Despite the oil production cut agreement, Asian stocks dropped on Monday in a tranquil trading, where markets in Hong Kong and Australia were closed for Easter Monday.
The general sentiment
continued to be affected by the latest developments of the Covid-19, as more
than 1.8 million cases worldwide were confirmed while at least 112,241 deaths had
been registered, according to data collected by John Hopkins University.