Oil hits 14-month peak on OPEC+ production cut extension

Oil prices continued to rise as the US market opened on Friday, to extend their gains for the third straight day and hit a 14-month high, buoyed by the OPEC-Plus decision to extend the current output cuts until April, and Saudi Arabia’s decision to maintain its voluntary cut.

US crude 2.2% to the highest level since January 2020 at $65.54, after opening at $64.12, and hit a day low of $63.84, and Brent crude rose 2.5% to the highest since January 2020 at $68.64, after opening at $67.00, and hit a day low at $66.69.

US crude rose 4.9% yesterday, and Brent crude futures rose 4.8%, in the largest daily gain since February 22.

OPEC and independent producers to keep the current oil production levels without any change until the end of April.

During the OPEC Plus meeting on December 3, the members agreed to abandon a planned increase in production of about 2 million barrels per day, while agreeing to increase supplies by only 500 thousand barrels per day as of January.

Saudi Arabia also announced a voluntary output cut of about one million barrels per day during February and March to balance the market, but Riyadh's decision about the supply levels during April remains unclear.