Oil Prices Close 4.2% Higher After OPEC+ Extend Cuts

Oil prices rose on Thursday, supported by the extension of crude output cuts by OPEC+ until the end of April.

Brent crude futures for May delivery rose by $2.67, or 4.2%, to close at $66.74 per barrel, recording its highest finishing level since February 25.

Meanwhile, the West Texas Intermediate (WTI) crude futures for April delivery gained $2.55, or 4.2%, to end the session at $63.83 per barrel, its highest closing level since the end of April 2019.

The Organization of the Petroleum Exporting Countries (OPEC) and its partners, forming an alliance known as OPEC+, agreed on Thursday to extend most crude oil production cuts until the end of next month.

While Russia and Kazakhstan were allowed limited eases in output curbs, of 130,000 barrels per day (b/d) and 20,000 b/d, respectively, Saudi Arabia has vowed to continue its voluntary production cut of one million barrels a day, but the kingdom is set to gradually phase out the cuts in the near future.

Producers agreed that despite crude prices recently returning to their levels prior to the Coronavirus pandemic, the market remains fragile.