Oil Soars to Near 14-Month High as OPEC+ Extends Output Cuts

Oil prices jumped more than $1 a barrel on Friday, hitting their highest levels 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 amid the coronavirus pandemic.
Brent crude futures for May rose to as high as $68 a barrel on Friday, a level not seen since Jan. 8, 2020. The contract was up $1.09, or 1.6%, to $67.83 a barrel, and was on track for a near 3% gain in the week, CNBC reported.
US West Texas Intermediate crude futures climbed 93 cents, or 1.5%, to $64.76 per barrel after hitting a high of $64.94 earlier in the session. Both contracts surged more than 4% on Thursday after the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, extended oil output curbs into April, granting small exemptions to Russia and Kazakhstan.
“OPEC+ has kept output steady indicating that it wants to take a cautious approach in normalizing production,” said Ravindra Rao, vice president, commodities at Kotak Securities.
“A steady rise in production can be absorbed with global demand improving and may not have much negative impact on price. Concerns will rise only if US output rises in response to higher prices.”
Investors were surprised that Saudi Arabia had decided to maintain its voluntary cut of 1 million barrels per day through April even after oil prices rallied over the past two months.