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The price of oil jumped 2% Tuesday after the Organization of the Petroleum Exporting Countries and its non-member allies agreed to modestly increase oil production in February.
The price of West Texas Intermediate crude increased by over $1 per barrel, and the price ofBrent crude increased by over $1 per barrel. The oil price benchmark has been at its highest in six weeks.
The group will collectively pump 400,000 barrels a day next month, led by Saudi Arabia and Russia.
The energy alliance is moving ahead with its plan to gradually restore oil output that was halted during the Pandemic.
The decision was broadly expected due to pressure from the US and signs that the Omicron coronaviruses variant is having less impact on demand than first thought.
When the emergence of Omicron first raised demand worries, oil prices surged more than 20%.
The coalition is due to agree on production levels for March at the next meeting of the group.
Business Insider has an original article.
