Brent hovers near four-week high as markets assess global supplies

International benchmark Brent rose in European trade, resuming gains after a short hiatus on Friday off four-week highs. 

The gains come as markets assess global supplies following OPEC+ surprise decision to cut output starting next month, and amid ongoing negotiations in Iraq after Kurdistan's supplies were halted. 

Brent Price Today

Brent crude rose 0.9% to $85.62 a barrel, with a session-low at $84.83, with Brent losing 0.5% on Thursday, the first loss in five days on profit-taking away from recent four-week highs at $86 a barrel.

Brent rose 6.3% last week, the third weekly profit in a row. 

Surprise Cuts 

In a surprise move, OPEC and allies including Russia announced voluntary production cuts amounting to 1.65 million bpd starting May and until the end of the year.

That cut adds to a previous cut agreed upon in October 2022 and amounting to 2 million bpd.

That brings total production cuts by OPEC+ to 3.65 million bpd starting May and until the next of the year, equivalent to 3.7% of global demand according to Reuters.

Russian Production

The Russian Energy Ministry said it cut oil output by 700 thousand bpd in March. 

Experts said such a number isn't matched with current indications of Russian maritime exports in March and supplies to local refineries. 

Kurdish Supplies

The ongoing legal dispute between Iraq and the semi-independent Kurdistan region led to a drop of 450 thousand bpd in crude exports, with Turkey halting Kurdistan's supplies through its pipeline after a court order requiring Iraqi federal government's approval on such shipments.

According to Turkish officials, Turkey wants to negotiate with Iraq to settle payments and end the legal dispute before resuming operations on the pipeline.