Brent rises to highest since March after OPEC+ output cut deal | Reuters

Brent rises to highest since March after OPEC+ output cut deal | Reuters

Global benchmark Brent crude prices rose 1% to their highest since early March on Thursday on renewed hopes for a U.S. stimulus deal and after major oil producers agreed to increase output by a modest 500,000 barrels per day (bpd) from January.

The increase means the Organization of the Petroleum Exporting Countries (OPEC) and Russia, a group known as OPEC+, would move to cutting production by 7.2 million bpd, or 7% of global demand from January, compared with current cuts of 7.7 million bpd.

OPEC+ had been expected to extend existing cuts until at least March, after backing down from earlier plans to boost output by 2 million bpd.

“Markets are now reacting positively and prices are recording a small increase as 500,000 (bpd) of extra supply is not deadly for balances,” said Paola Rodriguez-Masiu, senior oil markets analyst at Rystad Energy.

Brent LCOc1 futures rose 46 cents, or 1.0%, to settle at $48.71 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 36 cents, or 0.8%, to a one-week closing high of $45.64.