Oil prices jump as OPEC+ keeps production largely steady, Saudi Arabia continues voluntary cut
Oil prices jumped on Thursday after OPEC and its oil-producing allies said the group would keep production largely steady through April. Saudi Arabia also said that it would extend its one million barrels per day voluntary production cut into April.
The group approved the continuation of current production levels for April, except that Russia and Kazakhstan will be allowed to increase production by 130,000 and 20,000 barrels per day, respectively.
Brent crude rose $2.67, or 4.2%, to settle at $66.74 a barrel, after rising to $67.75, its highest since January 2020.
U.S. crude futures ended $2.55, or 4.2%, higher at $63.83, having also scaled a January 2020 peak, at $64.86.
Analysts had broadly expected OPEC+ to reverse some of the output cuts it made last year.
Oil prices rose more than $1 per barrel on Thursday after Saudi Energy Minister Prince Abdulaziz bin Salman urged caution and vigilance at the beginning of a meeting of OPEC ministers and their allies about the future of supply cuts.
‘Quintessentially different views and interests’
OPEC+ initially agreed to cut oil production by a record of 9.7 million barrels per day last year, before easing cuts to 7.7 million and eventually 7.2 million from January.
OPEC kingpin Saudi Arabia has since taken on voluntary cuts of 1 million from the beginning of February through March.
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“I do believe that most companies have committed to value growth, rather than production growth,” she said during a CNBC Evolve conversation with Brian Sullivan.
Reference: CNBC, Reuters
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