Brent crude still needs to work through its oversupply issues before it can break above its current price range of between $40 and $50 per barrel, said Westwood Global Energy Group's Thom Payne.
The alliance cut production by 9.7 million barrels per day at the start of May 1, and the cuts — which have helped push up crude prices in the last two months — was initially set to decline on July 1.
"We definitely need to drain that before we can see prices move materially above that kind of price structure," Payne said. Commenting on the recent OPEC+ agreement, JPMorgan's Head of Asia Pacific Commodities Research, Scott Darling, said: "I'd take some positives out of this — you've got compliance."
Oil prices have seen a partial recovery since seeing a plunge in April due to several concerns — ranging from uncertainty over demand due to the coronavirus pandemic that was spreading rapidly, to issues with crude oversupply.
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