Sadly it will go higher.
Production cuts plus increased travel and China coming out of Covid lock down.
03:07 - Source: CNN
Hong Kong/Atlanta/London
CNN
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Oil prices spiked Monday after OPEC+ producers unexpectedly announced that they would cut output.
The oil prices sunk as low as $73 and $67 a barrel respectively in the week following the collapse of Silicon Valley Bank .
On Sunday, Saudi Arabia said it would start âa voluntary reductionâ in its production of crude oil, alongside other members or allies of the Organization of the Petroleum Exporting Countries (OPEC).
The cuts will start in May and last through the end of the year, an official with the Saudi Ministry of Energy was quoted as saying by Saudi state-run news agency SPA.
The reductions are on top of those announced by OPEC+ in October, according to SPA.
Russia will keep cutting oil output through June
That month, oil producers agreed to slash output by 2 million barrels a day, the largest cut since the start of the pandemic and equivalent to about 2% of global oil demand.
Saudi Arabia now says it will cut oil production by another half a million barrels a day.
Meanwhile, Iraq will slash production by 211,000 barrels per day, and the United Arab Emirates will decrease output by 144,000 barrels per day.
Kuwait, Algeria and Oman will also lower production by 128,000, 48,000 and 40,000 barrels per day, respectively.