Oil prices rose on Monday as Saudi Arabia reaffirmed its commitment to OPEC+ production cuts and U.S. drilling activity fell, with a 2017 image highlighting ongoing energy market transformations.
Brent crude reached $66.17 per barrel, while West Texas Intermediate (WTI) climbed to $56.42, according to market data. Saudi Energy Minister Khalid al-Falih stated that the OPEC+ agreement to reduce output by 1.2 million barrels per day would likely continue past June, saying, "We will see what happens by April, if there is any unforeseen disruption, but barring this I think we will just be kicking the can forward."
The OPEC+ alliance, which includes Russia, has maintained supply cuts since 2019 to stabilize markets. Their next meetings are scheduled for April 17-18 and June 25-26 to review policy. Saudi Arabia also announced plans to limit crude exports below 7 million barrels per day in April.
U.S. energy firm Baker Hughes reported a nine-rig decline in oil drilling activity, bringing the total to 834 rigs. Meanwhile, the International Energy Agency warned of a "second wave of the U.S. shale revolution" that could see U.S. oil exports surpass Russia’s and approach Saudi Arabia’s levels by 2024, according to IEA chief Fatih Birol.
Analysts noted mixed signals, with Bank of America predicting Brent crude could reach $70 per barrel this year despite concerns about a strong U.S. dollar and sluggish global demand growth. A 2017 photo of U.S. oil production in the Permian Basin underscored the evolving energy landscape.
