Oil prices rise by 1% after the OPEC meeting


Today, Friday, oil prices jumped by more than 1%, 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.

According to «Reuters» future contracts for Brent crude for May delivery increased by more than a dollar to $ 67.77 a barrel, and is on the path of achieving gains of about 2% per week, and US West Texas Intermediate crude futures rose more than a dollar to $ 64.87.

The two benchmarks rose more than 4% 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 granted limited exemptions to Russia and Kazakhstan.

Investors were surprised that Saudi Arabia decided to maintain its voluntary reduction of one million barrels per day during April, even after oil prices rose over the past two months.

Crude prices have risen 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 low prices in light of the slowdown in sales.

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.


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