Saudi Arabia has decided to reduce oil production by 500,000 barrels per day (bpd), while some other member states pledged to less significant numbers, Mehr news agency reported.
Earlier, Russia announced that it would extend a voluntary reduction in oil output of 500,000 barrels per day from the average February level until the end of 2023.
Oil prices dropped on Monday as jitters over the economic impact of the U.S. Federal Reserve potentially raising interest rates was enough to outweigh support from new OPEC+ supply cuts taking effect this month
Brent futures for July delivery were down 56 cents, or 0.7%, at $79.77 a barrel at 0547 GMT, while U.S. West Texas Intermediate (WTI) crude lost 63 cents, a 0.8% drop, to trade at $76.15, according to Iran Front Page.
“The prospect of further rate hikes to be announced by the Fed this week is expected to drive an increase in near-term price volatility,” said NAB’s Moore.
The Fed is expected to increase interest rates by another 25 basis points this week. The U.S. central bank has raised its policy rate by 475 basis points since March of last year from the near-zero level to the current 4.75%-5.00% range.