Oil prices down after OPEC production cut deal
OPEC+ cut will not be enough to avoid reaching full storage capacity unless countries outside OPEC+ also lower output
Crude oil prices were down during Good Friday's thin trading following OPEC's output curb decision on Thursday.
International benchmark Brent crude was at $31.82 per barrel at 0640 GMT on Friday, down 3.1% for the day after closing Thursday at $32.84 a barrel.
American benchmark West Texas Intermediate (WTI) was at $23.21 a barrel at the same time for a 7.5% decline after ending the previous day at $25.09 per barrel.
Oil prices rallied Thursday after OPEC and non-OPEC oil producing countries convened via webinar with investors to agree substantial output cuts.
The group dubbed as OPEC+ agreed early Friday to curb their total oil output by 10 million barrels per day (bpd) from May 1 until June 30 -- much less than the market expectation of 15-20 million bpd.
While the glut of supply in the oil market is estimated to increase by around 15 million bpd in the second quarter of the year, the current OPEC+ cut is not sufficient to avoid reaching full storage capacity unless countries outside OPEC+ such as the U.S., Canada, Brazil, and Norway also lower their individual outputs.
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