Oil prices on March 5 morning were growing steadily, continuing the evening dynamics, after the OPEC+ decision to keep the existing oil production cut agreements in force, according to trading data, Report informs, referring to Prime.
The price of May futures for North Sea Brent crude oil rose by 1 percent, to $67.41, April futures for WTI grew by 0.99 percent, to $64.44 per barrel.
On March 4, the alliance decided not to increase production in April (analysts expected a total increase of 0.5 million barrels per day), Saudi Arabia will also maintain its additional reduction of 1 million barrels per day.
Moreover, the OPEC+ countries agreed on Russia’s increasing oil production in April by 130,000 barrels per day, while Kazakhstan will increase output by 20,000 barrels.
"Crude’s spike was a knee-jerk reaction to a shocking OPEC+ decision," said Vandana Hari, founder of Vanda Insights in Singapore.
OPEC+ cut oil production by 9.7 million barrels per day since May due to a drop in demand caused by the coronavirus pandemic.
As demand recovered, the restrictions were adjusted, and as of March they amount to 7.05 million barrels per day.
Moreover, in February and March, only Russia and Kazakhstan got the opportunity to slightly increase production.