A group of major oil producers has agreed to extend production cuts for another month despite a recent price surge, choosing to limit supply until the global economic recovery is more firmly established.
The Organization of the Petroleum Exporting Countries (OPEC) and allied producers said on Thursday that they would largely roll over production cuts during the month of April. Two countries — Russia and Kazakhstan — were granted exemptions to increase their output by a small amount.
Crude futures have now recovered all the ground lost during the early months of the pandemic. Brent crude, the global benchmark, increased by more than 5% to $67.55 on Thursday. US oil prices were above $64.50, a far cry from the depths reached last April when oil crashed below zero for the first time in history.
Union Jack Oil plc (LON:UJO) is an onshore oil and gas exploration company with a focus on drilling, development and investment opportunities in the United Kingdom hydrocarbon sector.
