Oil prices rise on production cuts concern

The oil market is heading for a significant shortfall of around two million barrels per day at the end of the year as a result of a production cut by major producers, the Organisation of the Petroleum Exporting Countries (OPEC) disclosed this on Thursday.

In its monthly report for April, OPEC noted the unexpected decision at the start of the month by OPEC, which included Russia alongside OPEC members, to reduce production from next month.

Russia is among the countries cutting production by extending to the end of the year, a production cutback originally scheduled to expire at the end of June. It said the aim was to support prices.

Oil prices had responded to the move.

Brent crude, a key global benchmark, had risen by more than 7 dollars since the start of the month to around 87 dollars.

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