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, except Russia and Kazakhstan will be allowed to increase production.
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, while the West Texas Intermediate futures advanced $2.55 to settle at $63.83 a barrel on the New York Mercantile Exchange.
Experts had broadly expected OPEC+ to reverse some of the output cuts.
As per the release issued by OPEC, Russia and Kazakhstan will be allowed to increase production by 130,000 and 20,000 barrels per day, respectively.
The two countries are allowed to do so “due to continued seasonal consumption patterns,” the OPEC statement said.
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.
The OPEC+ has introduced caps on production to stabilize global oil prices.