On Friday, oil prices recorded their highest level in nearly two years, reaching 67.77 dollars per barrel.
Oil prices rose today, Friday, by more than 1 percent, to continue the gains made in the previous session, after OPEC and its allies agreed not to increase supplies in April, as they await a greater recovery in demand in light of the Corona virus pandemic.
Brent crude futures for May delivery increased by more than a dollar to $ 67.77 a barrel by 0650 GMT, and is on a path of gaining around 2 percent for the week.
US West Texas Intermediate crude futures rose more than a dollar to $ 64.87.
The two benchmarks rose more than 4 percent on Thursday after the Organization of the Petroleum Exporting Countries (OPEC) and allies, a group known as OPEC +, extended oil production cuts to April and gave limited exemptions to Russia and Kazakhstan.
“It just shows the surprise in the discipline of OPEC +,” said Michael McCarthy, chief market strategist at CMC Markets.
Investors were surprised that Saudi Arabia decided to maintain its voluntary reduction of one million barrels per day in April, even after oil prices rose over the past two months.
Crude prices have increased since the beginning of November, but the present demand for oil from refiners and other consumers has not yet matched that, as shipments to major markets such as China are traded in general at lower prices in light of the slowdown in sales.
Indian Oil Minister Dharmendra Pradhan expected that OPEC + decision to continue production cuts would harm consumers in countries that buy crude.
Analysts are revising their price forecasts to include continued supply constraints by OPEC + and shale oil producers in the United States who are curbing spending to boost investor returns.
Goldman Sachs raised its forecast for Brent price by five dollars to $ 75 a barrel in the second quarter and $ 80 a barrel in the third quarter of this year, while UBS increased its forecast for Brent to $ 75 a barrel and for US West Texas Intermediate crude to $ 72 a barrel in the second half. From 2021.