WTI Crude Tops $65 a Barrel for First Time Since January 2020
(Bloomberg) -- West Texas Intermediate crude rose above $65 a barrel on Friday for the first time since January 2020, after the OPEC+ alliance retained deep output curbs for another month.
The front-month April contract climbed as much as 1.9% in New York, extending a 4.2% gain on Thursday.
The Saudi and Russian-led group of producers surprised the market Thursday by maintaining supply restrictions through April, with the Kingdom sticking to voluntary cuts in what’s seen as the “most bullish outcome we could have expected,” said JPMorgan Chase & Co. in a note.
In response to OPEC+’s decision, several banks raised their forecasts for oil prices in the coming months, with some seeing sharper market deficits and stockpile drawdowns ahead. Tighter supplies come as fuel consumption is on the mend globally as vaccines are rolled out and economies recover.
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