Oil rises as OPEC+ decides on production policy
Oil prices surged up 3% on Thursday after news that OPEC+ reached a deal to gradually ease production cuts from May.
Brent crude futures rose $2.12 to settle at $64.86 a barrel.
U.S. crude futures settled up $2.29 at $61.45 a barrel.
OPEC+ decides to gradually curb output cuts as demand concerns persist
A group consisting of some of the world’s most powerful oil producers on Thursday decided to gradually curb existing output cuts beginning next month.
Starting in May an additional 350,000 barrels per day will be added to production, with another 350,000 coming on the market in June. Come July output will be increased by 450,000 barrels per day.
The OPEC+ alliance is currently cutting by just over 7 million barrels per day in an attempt to prop up prices and reduce oversupply. OPEC kingpin Saudi Arabia has voluntarily added an additional 1 million barrels per day to those cuts.
Saudi Arabia said that it will begin curbing its voluntary output cuts in May.
Reference: Reuters, CNBC
Thai
Eng