Oil Nearly Doubles its Weekly Gains on Friday

Oil prices rose on Friday, reaching their highest levels since 2019, supported by the extension of the OPEC+ output cuts.

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.

Brent crude futures for May delivery gained $2.62, or 3.9%, to close at $69.36 per barrel, its highest finishing level since May 2019.

For the week, the global benchmark crude most active contract gained 7.7%.

Meanwhile, the West Texas Intermediate (WTI) crude futures for April delivery added $2.26, or 3.5%, to finish at $66.09 per barrel, rising by 7.5% for the week.