WTI extends rally to fresh 14-month highs above $65

• Saudi Arabia decided to prolong voluntary output cut through April.
• WTI remains on track to post strong weekly gains.
• Goldman Sachs and JP Morgan hiked Brent oil price forecasts.

Crude oil prices rose sharply following  the 14th OPEC and non-OPEC Ministerial Meeting on Thursday with the barrel of West Texas Intermediate (WTI) gaining nearly 5% on a daily basis. WTI preserved its bullish momentum on Friday and touched its highest level since January 2020 at $65.53. As of writing, WTI was up 2% on the day at $65.33 and was gaining 6.2% on a weekly basis.

OPEC+ output strategy boosts oil prices

OPEC+ producers announced on Thursday that they have decided to keep the oil output unchanged with Saudi Arabia extended its voluntary cut of 1 million barrels per day through April. During the press conference,  Saudi Arabia’s energy minister Prince Abdulaziz bin Salman adopted a cautious tone and said that the uncertainty around the oil market recovery has not receded yet.

Following this development,  Goldman Sachs said it raised its predictions for Brent oil for the second and third quarters by $5 to $75 and $80, respectively. Additionally,  JP Morgan announced it hiked the 2022 price forecast to $74. Currently, Brent oil is trading at $68.68, rising 2.4% on the day.

Later in the session, Baker Hughes Energy Services will release its  weekly US Rig Count data, which is unlikely to trigger a significant market reaction.

Technical levels to watch for