Oil prices have finally tilted towards a more consecutive growth after Sunday’s OPEC+ decision: currently frontal month Brent Crude oil is adding 1.27% to $77.39/bbl, while the U.S. benchmark WTI is advancing almost 1.5% to $73.03/bbl.

At yesterday's surprise summit, OPEC+ agreed to extend oil output cuts of 3.66 million barrels per day by one more year through 2024. Furthermore, Saudi Arabia confirmed it would reduce its July output on top of the broader deal to limit supply into the next year. The prices of oil futures rose by over 1.5%. In a press release, OPEC described the move as aimed at “achieving and maintaining a stable oil market and providing long-term guidance to the market, consistent with a successful approach of being cautious, proactive and pre-emptive.” announced in March that they plan to cut output by 1.16 million barrels per day.

Saudi Arabia apparently needs sustained high oil revenues to fund several pivotal development projects to diversify the country's economy. The International Monetary Fund estimates the kingdom needs $80.90 a barrel to meet its planned spending commitments, which include Neom, a proposed $500 billion futuristic desert city project.

But oil prices kept sliding down, even after OPEC+ slashed 2 million barrels per day in October, angering U.S. President Joe Biden by threatening higher gasoline prices a month before the midterm elections. Then, several OPEC members led by the Saudis made a surprise cut of 1.16 million barrels a day in April.

The decision comes after producers pledged to cut production by 2 million barrels per day by the end of the year. The recent replenishment of the U.S. Strategic Petroleum Reserve – after Biden announced last year the release of the largest national stockpile in U.S. history – suggests that U.S. officials may be less concerned about OPEC production cuts than they have been in recent months.