Crude on boil! Surprise Opec+ cut may fire oil prices to $90-95 by 2023-end

Crude oil got a shot in the arm after the Organization of the Petroleum Exporting Countries (OPEC)) announced surprise output cuts. The US West Texas Intermediate (WTI) rose by $6.34 to $80.47 on Monday while Brent crude hit $84.86, gaining 6.15%. The black gold is expected to test $90-95 level by the end of 2023.

The production cut will likely help the cause of crude oil in the medium to long term and Brent could test levels of $90-95 by December, Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities said. Brent has been an underperformer and lost 7.24% on the year-to-date basis and nearly 4.04% in March, he added.