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

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

Picture used for illustrative purpose. 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. 75, or 2. 6%, at $68. 49 a barrel by 1250 GMT and US West Texas Intermediate (WTI) crude futures climbed $1. 49, or 2. 3%, to $65. 32 as both remained on track for weekly gains. Both contracts surged more than 4% on Thursday after the Organization of the Petroleum Exporting Countries 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. "No additional