Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Oil hits almost 14-month high after OPEC+ extends output cuts

CommoditiesMar 05, 2021 05:40AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Crude oil storage tanks are seen from above at the Cushing oil hub in Cushing

By Noah Browning

LONDON (Reuters) - Oil prices jumped more than 2% on Friday, hitting their highest in nearly 14 months after OPEC and its allies agreed not to increase supply in April as they await a more substantial recovery in demand.

Brent crude futures were up $1.52, or 2.3%, at $68.26 a barrel by 1008 GMT and U.S. West Texas Intermediate (WTI) crude futures climbed $1.30, or 2%, to $65.13 as both remained on track for weekly gains.

Both contracts surged more than 4% on Thursday after the Organization of the Petroleum Exporting Countries (OPEC) and allies, together known as OPEC+, extended oil output curbs into April, granting small exemptions to Russia and Kazakhstan.

"OPEC+ settled for a cautious approach ... opting to increase production by just 150,000 barrels per day (bpd) in April while market participants looked for an increase of 1.5 million bpd," said UBS oil analyst Giovanni Staunovo.

Investors were surprised that Saudi Arabia had decided to maintain its voluntary cut of 1 million bpd through April even after the oil price rally of the past two months on the back of COVID-19 vaccination programmes around the globe.

"An array of factors coalesced to bring the parties together, but the resultant price increase will almost certainly push the parties to change their minds when they meet again on April 1," Citigroup (NYSE:C) said in a note.

Analysts are reviewing their price forecasts to reflect the continued supply restraint by OPEC+ as well as U.S. shale producers, who are holding back spending to boost returns to investors.

Goldman Sachs (NYSE:GS) raised its Brent crude price forecast by $5 to $75 a barrel in the second quarter and $80 a barrel in the third quarter of this year. UBS raised its Brent forecast to $75 a barrel and WTI to $72 in the second half of 2021.

Oil hits almost 14-month high after OPEC+ extends output cuts
 

Related Articles

Historic Oil Glut Amassed in the Pandemic Almost Gone
Historic Oil Glut Amassed in the Pandemic Almost Gone By Bloomberg - Apr 21, 2021 2

(Bloomberg) -- The unprecedented oil inventory glut that amassed during the coronavirus pandemic is almost gone, underpinning a price recovery that’s rescuing producers but vexing...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
Eudon Hickey
Eudon Hickey Mar 05, 2021 6:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Strange that reuters mention nothing abou the the brewing tension and attacks in the middle east.
Alan Rice
Alan Rice Mar 05, 2021 1:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
CRUDE: still dirt cheap. Goldman's STARTING TO see it :)
Art Fire
Art Fire Mar 05, 2021 5:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Strange how a democrat is the oil/industrial King.  Investors weren't flocking to it like they are now with Trump, that's for sure.
Eudon Hickey
Eudon Hickey Mar 05, 2021 5:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Not really. There is trouble in the middle east and the media does not report the truth
Tomasz Kącki
Tomasz Kącki Mar 05, 2021 12:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I admire Saudis. Looking far forward, deep pocket players who showed and strengthened their leadership in OPEC+. If vaccination is effective, oil will top $100 by EOY.
Tomasz Kącki
Tomasz Kącki Mar 05, 2021 12:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Benjamin Kang  They use their power and they know how to use it. Same as US.
The Chad Bull
The Chad Bull Mar 05, 2021 12:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They are really good at blowing things up
perplexed76 .
perplexed76 . Mar 05, 2021 12:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
10$ by this summer
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email