Oil prices rise as OPEC and allies start reducing output

New Delhi: Crude oil prices continued to gain as the Organization of the Petroleum Exporting Countries (OPEC) and their allies start reducing output starting Friday.

The benchmark Brent crude oil is at around $27 per barrel. The June contract on the Intercontinental Exchange (ICE) is trading at $26.89 per barrel, higher by 1.55 per cent.

The June delivery contract of WTI crude on the NYMEX is currently trading at $19.32 per barrel, higher by 2.55 per cent.

OPEC and its allies led by Russia had last month agreed to reduce output by 9.7 million barrels per day (bpd) for May and June.

Further, lower-than-expected rise in crude supply in the US along with signs of resumption of gasoline demand has also supported the prices.

The rise in oil prices comes after the recent freefall on concerns of decline in the storage capacity as supply continues and demand remains nearly standstill.

Last week in an unprecedented price movement, the WTI crude fell below zero for the first time ever.

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