Oil Prices Rally After OPEC Meeting

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Oil prices rallied on Friday to rise above $42 a barrel after OPEC producers and their allies promised to meet commitments on cutting supply and two major oil traders said demand was recovering well.

Benchmark Brent crude rallied 2.7 percent to $42.61 a barrel, the highest since June 8. U.S. West Texas Intermediate (WTI) crude futures were up as much as 3.2 percent, at $40.07.

The Organization of Petroleum Exporting Countries (OPEC) and non-OPEC oil-producing nations on Thursday promised full conformity with oil output cuts from July through September to balance the global oil market.

“Attainment of 100 percent conformity from all participating countries is not only fair and equitable, but vital for the ongoing and timely rebalancing efforts and helping deliver a sustainable oil market stability,” the 23-member group said in a statement.

Iraq and Kazakhstan have already submitted their compensation schedules, while other underperforming participants have until next Monday, June 22 to submit their schedules, OPEC said in the statement.

Signs that fuel demand across Europe is staging a gradual recovery after the height of the lockdowns in April also supported prices.

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