Refile: Oil rises after OPEC+ extends output cuts

JSR

04/03/2024 01:54

(Corrects paragraph 3 to fix verb.)
       March 4 (Reuters) - Oil prices rose on Monday after
OPEC+ members agreed to extend voluntary oil output cuts of 2.2
million barrels per day into the second quarter, largely in line
with market expectations.
    Brent  LCOc1  futures was 28 cents, or 0.3% higher, at
$83.83 a barrel at 0134 GMT, while the U.S. West Texas
Intermediate (WTI)  CLc1  rose 20 cents, or 0.3%, to $80.17 a
barrel. 
    The output cuts by the Organization of the Petroleum
Exporting Countries and its allies (OPEC+) are expected to
cushion the market amid global economic concerns and rising
output outside the group, with Russia's announcement surprising
some analysts.
    Russia will cut its oil output and exports by an additional
471,000 barrels per day (bpd) in the second quarter, in
coordination with some OPEC+ participating countries, its Deputy
Prime Minister Alexander Novak said on Sunday.
    "Signs of tightness in the physical market continue to push
crude oil higher. Output cuts by the OPEC+ alliance continue to
reduce supply as the market worries about the renewed tensions
in the Middle East," ANZ analysts said in a note on Monday.
    Rising geopolitical tensions due to the Israel-Hamas
conflict and Houthi attacks on Red Sea shipping have supported
oil prices in 2024, although concern about economic growth has
weighed.  
    Yemen's Iran-backed Houthis vowed on Sunday to continue
targeting British ships in the Gulf of Aden following the
sinking of UK-owned vessel Rubymar.
     In some of the strongest comments by a senior U.S. leader,
U.S. Vice President Kamala Harris on Sunday demanded Palestinian
militant group Hamas agree to an immediate six-week ceasefire
while forcefully urging Israel to do more to boost aid
deliveries into Gaza.
    Washington has insisted the ceasefire deal is close and has
been pushing to put in place a truce by the start of Ramadan, a
week away. A U.S. official on Saturday said Israel has agreed on
a framework deal.

 (Reporting by Sudarshan Varadhan; Editing by Stephen Coates)
 ((sudarshan.Varadhan@thomsonreuters.com; +65 91164984;))