Oil Price Surges With OPEC+ Supply Cap

Oil Surges to its highest in two years after OPEC+ surprised the markets by retaining its supply cap as the world rebounds from the pandemic.

The global benchmark Brent futures closed on Friday at $69.54 while its US counterpart WTI closed at $66.28. The Organization of Petroleum Exporting Countries and its allies, in a surprise move, said they will retain current production cuts to the end of April. Saudi Arabia also extended its voluntary output cut of one million barrels per day which was due to expire at the end of March, through the month of April.

OPEC+ decision is viewed by market analysts as the group adopting a cautious approach to the global economic recovery from the pandemic that has pummeled crude value. The producer alliance’s supply curbs and the rollout of Covid-19 vaccines have aided a stellar rebound for crude from the depths of the coronavirus-related fallout.