Oil scales 1-year peak as OPEC+ rolls over output for April | Reuters

Oil scales 1-year peak as OPEC+ rolls over output for April | Reuters

Oil rallied more than 4% on Thursday, hitting its highest in over a year, after OPEC and its allies agreed to keep production unchanged into April, reasoning that the demand recovery from the coronavirus pandemic was still fragile.

Brent crude rose $2.67, or 4.2%, to settle at $66.74 a barrel, after rising to $67.75, its highest since January 2020.

U.S. crude futures ended $2.55, or 4.2%, higher at $63.83, having also scaled a January 2020 peak, at $64.86.

“OPEC surprised us... The message OPEC is sending market is they’re quite willing to see oil prices run hot and ultimately, go a long way in reducing the inventory overhang built last year because of COVID-19,” said Bart Melek, head of commodity strategies at TD Securities.

Some analysts had predicted OPEC+, an alliance of the Organization of the Petroleum Exporting Countries and other major producers, would increase output by about 500,000 bpd.