PARIS: Oil prices rose on Thursday even as major crude producers agreed to boost output by more than the usual amount following an EU ban on Russian imports.

European shares closed higher, with Paris leading the way at 1.3 percent and Frankfurt rising 1.0 percent. London’s FTSE 100 was shut for a holiday.

Wall Street stocks were little changed early on following mixed labour data and a Microsoft earnings warning, but they edged slightly higher in later trading.

Equities fell in Asia as traders grow increasingly worried that central bank moves to rein in inflation could tip economies into recession.

All eyes were on Vienna where the Opec+ group of major oil producers, led by Saudi Arabia and Russia, agreed to boost oil output more than expected in light of the Russian invasion of Ukraine. Producers had been expected to stick to their policy of only increasing output modestly.

But, amid soaring prices and hard on the heels of the EU ban on most Russian oil imports, pressure has been rising for the 23-member cartel to boost output to stabilise prices. In the end, the group agreed to add 648,000 barrels per day to the market in July, up from 432,000 in previous months.

The move did not appear to be enough to calm oil markets, with the benchmark Brent crude up just under 1.0 percent at $117.42 per barrel and West Texas Intermediate also 1.2 percent higher at $116.58.

Published in Dawn, June 3rd, 2022