Oil calms down after rally

Oil settled after the biggest gain in a week as OPEC+ reaffirmed its policy of production cuts amid tensions in the Middle East and Russia. Brent traded around $87 a barrel after rising 1.6% on Monday, while U.S. crude traded above $82. OPEC+ delegates see no need to change supply policy when they meet next week to review the situation, according to several national officials, and quotas will remain in place until June. The Houthis renewed their threats against Saudi Arabia if it supports U.S. attacks. Crude is up almost 13% so far this quarter after falling out of a narrow range in the first few months. Signs of strength in some commodity markets, including gasoline, helped fuel gains as Ukraine’s attacks on Russian refineries. The positive outlook led hedge funds to increase their bullish bets on Brent. Signs of a shift in monetary policy also supported sentiment. The Fed’s signal that it is willing to cut interest rates later this year has boosted appetite for riskier assets, including oil. Crude futures have been tracking equity benchmarks in recent sessions. “Supply disruption risks remain,” said Yeap Jun Rong, a market strategist at IG Asia Pte in Singapore, citing the Russia-Ukraine war as more refineries are hit.