Oil Soars Driven by OPEC + Agreement

Crude prices soared on Tuesday, and WTI broke the bar of $ 50 a barrel for the first time in ten months after OPEC + agreed to a minimal increase in its production in February and March.

A barrel of North Sea Brent for March delivery rose 4.91%, or $ 2.51 from Monday's close, to $ 53.60, shortly after reaching $ 53.76, its highest price since March 3. 

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WTI's US barrel for February rose 4.85%, or 2.31 dollars, to close at 49.93, after momentarily gaining more than 5% and hitting 50.05 dollars for the first time since February 26. 

Members of the Organization of the Petroleum Exporting Countries (OPEC) and their partners agreed on Tuesday to limit their production increase more than expected. 

The volume of crude oil voluntarily withdrawn from the market by the OPEC + alliance will rise from 7.2 million barrels per day (mbd) in January to 7.125 mbd in February and 7.05 mbd in March, the organization announced when closing its first ministerial summit of 2021, urging "prudence" in the face of the health crisis. 

The producers' club's objective, whose frequency of meetings has accelerated due to the effect of the pandemic, is above all to adjust the supply from month to month to sustain oil prices. 

"A more conservative approach by the group, given the uncertain period we are in, is very well received by the markets and should keep prices high," Craig Erlam, an analyst at Oanda, told AFP.