WTI crude fell to $78.7 per barrel on Monday, following a 4.5% gain last week, as OPEC and its allies agreed to extend voluntary production cuts until the end of June. The drop came after OPEC and its allies agreed to extend voluntary production cuts until the end of June. Saudi Arabia, the de facto leader of OPEC, announced it would prolong its voluntary 1 million barrels per day output cut. Russia also committed to reducing its production and export supplies by a combined 471,000 bpd. Additionally, Iraq and the UAE agreed to continue reducing output by 220,000 bpd and 163,000 bpd, respectively, until the end of June. Despite the decision being widely anticipated, analysts noted that it offered no surprises. In the Middle East, ongoing uncertainty regarding ceasefire talks between Israel and Hamas, as well as Houthi attacks on Red Sea shipping, added a risk premium to oil prices.
