Oil prices have experienced an increase following Saudi Arabia's announcement that it would reduce its daily oil production by one million barrels in July.

Other members of OPEC+, a coalition of oil-producing nations, have also agreed to continue their production cuts in an effort to stabilize declining prices.

OPEC+ is responsible for approximately 40% of the world's crude oil, and its decisions hold significant influence over oil prices. During Monday's Asian trading, Brent crude oil saw a rise of up to 2.4% before settling around $77 per barrel.

In addition to the production cuts for July, OPEC+ has revealed plans to further decrease production targets by 1.4 million barrels per day starting in 2024.

The meeting of oil-rich nations, which lasted for seven hours on Sunday, took place amid a backdrop of falling energy prices. While oil prices surged when Russia invaded Ukraine last year, they have now returned to pre-conflict levels.

In October of the previous year, OPEC+ had agreed to a production cut of two million barrels per day, equivalent to around 2% of global demand.

In April 2023, the group had further extended these cuts until the end of the year. However, Russian Deputy Prime Minister Alexander Novak stated that Sunday's discussions resulted in an "extension of the deal until the end of 2024."

On Sunday, Saudi Energy Minister Prince Abdulaziz bin Salman said that his country's cut of one million bpd could be extended beyond July if needed. "This is a Saudi lollipop," he said, in what is seen as a bid to stabilise the market.