Oil stabilizes as OPEC+ focus on cuts

Oil held steady near its highest level this year after OPEC+ extended production cuts and progress toward a ceasefire in Gaza stalled. Brent futures traded around $84 a barrel after rising 2 percent in the previous session. U.S. crude passed the psychological level on Friday for the first time since November, approaching $80. The Organization of the Petroleum Exporting Countries and its allies extended their 2 million barrels a day cuts until the end of June. Investors and analysts had widely expected the OPEC+ move, seeing it as necessary to offset a seasonal lull in demand and rising output from other producers. The OPEC Secretariat said in a statement that the latest cuts would be “gradually restored, depending on market conditions.” Crude has been on a slow but steady rise this year as wider timeframes signal tighter physical conditions and attacks on ships in the Red Sea have raised shipping costs. Still, delayed expectations for when the Fed will start cutting interest rates, strong production from outside OPEC+ and weak demand outlook from China capped gains. In the Middle East, progress toward pausing the Gaza conflict has stalled despite Hamas sending a delegation to Cairo for talks.