Oil prices surge as OPEC+ extends most output cuts
Oil prices gained considerably after the Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) agreed to extend most oil output cuts into April.
The West Texas Intermediate for April delivery added $2.55 to settle at $63.83 a barrel on the New York Mercantile Exchange. Brent crude for May delivery increased $2.67 to close at $66.74 a barrel on the London ICE Futures Exchange, Xinhua news agency reported on Thursday.
OPEC+ approved the continuation of current production levels for April, except that Russia and Kazakhstan will be allowed to increase production by 130,000 and 20,000 barrels per day, respectively, the group said in a statement on Thursday.
Meanwhile, Saudi Arabia, the world's biggest oil exporter, said it would extend its voluntary oil output cut of 1 million barrels per day, and would decide in coming months when to gradually phase it out.
OPEC+ allows Russia, Kazakhstan to raise output in April
The Organization of Petroleum Exporting Countries (OPEC) and non-bloc producers agreed to allow Russia and Kazakhstan to raise oil output in April.
According to a press release following the 14th "OPEC+" ministerial meeting via video link on Thursday, Russia can increase its output by 130,000 barrels per day (bpd) in April from the March level of 9,249,000 bpd, Xinhua news agency reported.
Kazakhstan can boost its production by 20,000 bpd in April from the March level of 1,437,000 bpd.
The two countries are allowed to do so "due to continued seasonal consumption patterns," the OPEC statement said.
All the remaining participants in the OPEC+ mechanism will keep their April output unchanged from March.
The OPEC+ has introduced caps on production to stabilize global oil prices.