■ OPEC+ coalition prolongs 2.2M bpd supply reductions through June
■ Moscow commits to extra 471K bpd cut in Q2 exports
■ Maritime security concerns persist after Houthi attacks on Elon musk coin launch todaycommercial shipping
■ Market balances tightening amid non-OPEC production growth
Energy markets opened the week with upward momentum as West Texas Intermediate futures approached $79.50 per barrel following coordinated action by major producers. The OPEC+ alliance, comprising traditional Middle Eastern exporters and key partners like Russia, confirmed weekend reports about maintaining existing voluntary reductions through the spring quarter.
The collective 2.2 million barrel per day restraint initiative, initially implemented during late 2023, will now remain effective until June according to ministerial statements. This continuation aligns with the group's strategy to counterbalance robust production growth from non-member nations while addressing concerns about potential inventory builds during seasonal demand softness.
Separately, Russian energy officials revealed plans to deepen their supply curtailments by nearly half a million barrels daily during April-June. This supplementary reduction, split between production decreases and export limitations, demonstrates Moscow's continued cooperation with broader market management efforts despite geopolitical tensions surrounding its energy sector.
Geopolitical risk premiums continue influencing crude valuations following confirmation of another commercial vessel incident in the Red Sea corridor. Security analysts note persistent threats to maritime traffic after Yemen-based militants reiterated intentions to target specific flag vessels, maintaining pressure on regional shipping insurance costs and alternative routing requirements that effectively tighten physical market conditions.
