By Adedapo Adesanya

The average price of crude oil grades rose about 3% on Monday as members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed to a small production cut of 100,000 barrels per day to support prices.

Brent crude futures gained $2.72 or 2.92% to sell at $95.74 a barrel, while US West Texas Intermediate (WTI) crude rose $2.26 or 2 .6% to reach $89.13 a barrel.

The OPEC+ meeting on Monday approved a decision to reduce the collective oil production target by 100,000 bpd for October, although Russia would have resisted such a decision.

Energy ministers from the OPEC+ production pact agreed to bring target production levels back to August quotas, saying last month’s increase was only scheduled for September.

While several OPEC members have signaled support for such a move, including Saudi Arabia, Russia is not among them, according to reports. The reason, they said, was that a reduction in supply could lessen its influence over large Asian oil buyers, as it would be a signal that there is more oil in the world than there is. there is demand.

According to Wall Street Journal sources, Russia voiced its objections to a production cut last week at a preliminary meeting, where OPEC+ set a 900-year oil market supply surplus as the baseline scenario. 000 barrels per day for this year and next.

The Joint Ministerial Monitoring Committee (JMMC) of the OPEC+ group of oil producers had backed the reduction of 100,000 barrels per day at a previous meeting.

The small reduction is actually quite irrelevant given that OPEC+ is estimated to be about 2.9 million barrels per day behind collective quotas.

Analysts, who did not expect the deal even after Saudi Arabia said it wanted to support prices, said the drop was mostly symbolic given OPEC+ was unable to provide support. achieve its production targets.

OPEC+, however, decided it could call a meeting at any time to discuss further actions. The meeting, OPEC said, decided to “request the president to consider convening an OPEC and non-OPEC ministerial meeting at any time to address market developments, if necessary.”

OPEC’s next regular monthly meeting is scheduled for Oct. 5.

Prices also gained support as the European Union’s foreign policy chief said he had less hope of reaching an agreement soon to revive a nuclear deal with Iran, which would delay any return. of about 1 million barrels per day of Iranian crude on the market.