Fluctuating trend in oil after OPEC+

Oil surged after OPEC+ agreed to begin phasing out cuts in 2025 despite concerns about the demand outlook and strong supply from outside the group. The Saudi Energy Ministry said on Sunday after the OPEC+ meeting that the output curbs would resume fully in the third quarter and then be gradually lifted over the next 12 months. Brent clawed back earlier losses to $82 a barrel and U.S. crude traded above $77. The deal aims to continue supporting oil prices while easing production curbs that have plagued some members, such as the United Arab Emirates, as they look to raise output levels. Most market watchers had expected OPEC+ to extend the cuts through the end of the year. “The market did not expect the cuts to ease from October,” said Vandana Hari, founder of Vanda Insights in Singapore. “The positive side for OPEC+ is that the agreement helps maintain compliance. If disproportionate cuts continue over the long term, it would be a source of friction.” Oil pared a monthly loss on Friday, partly due to ongoing concerns about the demand outlook for China, the world’s largest crude importer. Futures are still higher this year after geopolitical tensions from the Middle East to Ukraine have stoked supply concerns. Israel has backed down from a ceasefire plan put forward by U.S. President Joe Biden as the war in Gaza enters its eighth month.