Oil Prices Surge 2% as OPEC+ Extends Output Cuts

Oil prices surged by over 2% on Friday to mark nearly 14-month highs after producing countries agreed not to increase supply, according to Reuters.

• Brent crude futures climbed $1.75 or 2.6% at $68.49 a barrel by 1250 GMT. West Texas Intermediate (WTI) crude futures jumped $1.49 or 2.3$ to $65.32 on track for weekly gains. Both contracts grew by more than 4% on Thursday.
• The Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed to extend output curbs into April. Exemptions were granted to Russia and Kazakhstan.
• Saudi Arabia decided to maintain its voluntary cut of 1 million barrels per day through April, surprising investors. This comes amid an oil price rally on the back of global vaccination programs.
• Goldman Sachs raised its Brent crude price forecast by $5 to $75 a barrel in the second quarter and $80 a barrel in the third quarter. UBS raised its Brent forecast to $75 a barrel and WTI to $72 in the second half of 2021.