Oil prices settled higher Tuesday, as a report that OPEC and its allies were mulling extending production cuts in the second quarter and possibly through the end of the year, easing concerns about supply outstripping demand.
By 14:30 ET (19.30 GMT), the U.S. crude futures settled 1.7% higher at $78.87 a barrel and the Brent contract gained 1.4% to settle at $83.65
OPEC+ reportedly considers extending production limits
OPEC and its allies, or OPEC+, are considering extending voluntary oil output cuts into the second quarter and possible through year end, Reuters reported Tuesday, citing unnamed sources.
In late-November last year, OPEC+ members agreed to voluntary output curbs totalling about 2.2 million barrels per day for Q1. The move to extend cuts arrived in the wake of a rising non-OPEC production, particularly in the U.S., which continues to see output near record levels.
