The benchmark crude WTI gained 2.13% to settle at $79.72 per barrel. In addition, Natural gas also increased as it closed 3.46% higher to finish at $2.514. The rise in oil prices comes after Russia announced a 5% or 500,000 barrels a day production cut beginning next month.
The development comes in the wake of price caps on oil shipments from Russia and ahead of a possible new offensive in its conflict with Ukraine, which is nearing its first year.
Latest numbers from the Energy Information Administration indicate natural gas inventories in the U.S. dropped by 217bcf to 2,366bcf in the week ended February 3.
Furthermore, the Energy Select Sector SPDR ETF (XLE) is up 3.66% at the time of writing. In another development, Exxon is setting up a global trading division in a push to capture trading gains and better compete with its European peers. Here is a list of energy stocks that can be influenced by the latest developments in the energy markets.
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