Oil prices jumped Wednesday as the Organisation of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, agreed to stick to its planned oil output.
Brent crude rose 1.03 percent to $90.19 a barrel just after OPEC announced the modest production hike
U.S. West Texas Intermediate (WTI) crude futures also increased 1.25 percent to $89.45 a barrel.
Over the past months, oil prices have continued to surge as countries relaxed lockdowns and dropped travel restrictions.
On the other hand, OPEC+ decided to stick to its plans to increase output in March by 400,000 barrels per day.
OPEC and its allies had been adopting monthly production quotas since April 2020 to prop up prices and prevent an oversupply in the global oil market.
The agreement was reached at the 25th OPEC and non-OPEC ministerial meeting (ONOMM) held virtually on Wednesday.
According to the oil cartel, this agreement was reached in view of current oil market fundamentals and the consensus on the outlook.
The cartel also reiterated “the critical importance of adhering to full conformity and the compensation mechanism, taking advantage of the extension of the compensation period until the end of June 2022’’.
It slated its next meeting for March 2 to determine the oil production output for April.
