The price of West Texas Intermediate (WTI) crude oil started this Monday, April 1st, with a 0.89% increase, reaching $83.90 per barrel, thus continuing the trend from last week.

Futures contracts for WTI for delivery in May were up $0.43 compared to the previous session’s close.

Last week, WTI closed above $83 per barrel and ended the week with a 2.24% increase.

Current geopolitical tensions (referring to conflicts in Ukraine and Gaza), strong domestic demand, and OPEC+’s reiterated commitment to supply cut policies from now until early summer support the bullish behavior of oil in the short and medium term.

Investors also have an eye on US economic data to predict when the US Federal Reserve (Fed) will cut interest rates, which is expected to boost consumption and demand for oil.

According to a Reuters survey conducted on Monday, OPEC’s oil production dropped last month, reflecting lower exports from Iraq and Nigeria amid voluntary supply cuts by some members agreed upon with the broader OPEC+ alliance.

The Organization of the Petroleum Exporting Countries pumped 26.42 million barrels per day (bpd) last month, 50,000 bpd less than in February, according to the survey, which is based on shipping data and industry sources’ information.

Several OPEC+ members, including OPEC, Russia, and other allies, implemented new cuts in January to counter economic weakness and increased supply outside the group. Last month, producers agreed to maintain these cuts until the end of June.

A group of key OPEC+ ministers is meeting on Wednesday to analyze the market and their members’ production, with no policy changes expected to be recommended before the group’s next full meeting scheduled for June 1st.

According to the survey, the largest production reductions in March were attributed to Iraq and Nigeria.