Crude futures rose in early Asian trading after Opec and non-Opec producers finalised a landmark two-year production restraint agreement that will take 9.7mn b/d off the market in May and June.
The Ice front-month June Brent contract was at $32.81/bl at 02:25 GMT, up by $1.33/bl or 4.2pc from its settlement on 9 April. The contract had risen as high as $33.99/bl earlier in the session.
The Nymex front-month May WTI crude futures contract was at $23.98/bl, higher by $1.22/bl from its close on 9 April, after earlier peaking at $24.74/bl.
The Opec+ alliance reached a conditional deal on 9 April to remove 10mn b/d from the market in May and June, moderating to 8mn b/d in the second half of the year and 6mn b/d in 2021 and early 2022. The deal was not immediately finalised, after Mexico rejected its 400,000 b/d share of the cut over the initial May-June period as well as the October 2018 baseline allocated to most Opec+ members.
The group later agreed at an emergency video conference yesterday that Mexico will reduce output by just 100,000 b/d over the two-month period from the October 2018 baseline.
Opec+ production cuts were then adjusted to 7.7mn b/d over July-December and to 5.8mn b/d from January 2021-April 2022. Output will be reduced from each member country's October 2018 baseline, with the exception of Saudi Arabia and Russia, which will have an 11mn b/d reference level.
