Oil prices rose on Tuesday after an OPEC+ meeting settled on a record 9.7 million barrel output cut last Sunday.
International Brent Oil futures gained 1.13% to $32.27 per barrel at 9:48 Pm ET (2:48 AM GMT) while the Oil WTI futures rose by 1.87% to $22.83 per barrel.
The production cut will begin on May 1 and will decrease to 7.7 million barrels from July toward the end of the year. The cut will further be reduced to 5.8 million barrels at the start of 2021 to April 2022. By June 10, an OPEC+ meeting will be scheduled to discuss its next course of action.
Despite the record number, the cut was 0.3 million barrels below the initial proposed amount after Mexico protested the reductions.
U.S. President Donald Trump later stated in a tweet that the cuts were a “great deal for all” and expressed confidence that it would save the energy industry in the United States.
However, some sceptical investors said that the cut was too late to prevent an oversupply as the pandemic-led turbulence continues to disrupt global economy.