Oil closed with gains, despite OPEC + ‘s decision to increase production

International crude oil futures closed higher on Thursday as US crude stockpiles fell much larger than expected, while traders showed no “vibration” from the OPEC + cartel’s decision to increase more than expected production in July and August.

The global benchmark, Brent oil delivery in July, gained $ 1.32 or 1.1%. closing at $ 117.61 a barrel, with American WTI crude delivery in July to earn $ 1.61 or 1.4%, at $ 116.87 a barrel.

OPEC + agreed to increase its member countries’ cumulative output by 648,000 barrels per day in July and August, compared with a 432,000 barrel increase on a daily basis each month since last year.

Supply concerns remain, however, given OPEC + ‘s past difficulties in meeting the targets of previous increases, analysts say.

Earlier in the day, prices fell sharply when the Financial Times reported that Saudi Arabia had informed its Western partners that it would increase production if it became clear that there was a risk of a sharp drop in global supply due to declining Russian production.

Russia, however, contrary to information from the Wall Street Journal about Russia’s exclusion from production targets, remained part of the agreement.

The White House welcomed the OPEC + decision, excluding the role of Saudi Arabia as president and largest producer in the cartel.

The US and the positions of the United Arab Emirates, Kuwait and Iraq were positive.

The Associated Press also reported that US President Joe Biden is considering a live meeting with the powerful man of Saudi Arabia, Crown Prince Mohammed bin Salman, whom he had denounced in 2019 for the murder of journalist Jamal al-Jamal.

US crude inventories fell 5.1 million barrels in the week ended May 27, pushing up crude prices.