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The barrel of West Texas Intermediate (WTI) rose 3.87%, or $2.29, to settle at $61.45 on Thursday after OPEC+ announced its output strategy.  

Following  the 15th OPEC and non-OPEC Ministerial Meeting, producers have reached a deal to gradually increase oil output from May.  

OPEC+ agreed to ease production reductions by 350,000 barrels per day (bpd) in May and June and an additional 400,000 in July, paving the way for more than 1 million bpd to return to the market in the second half of the year.  

Despite these decisions, producers maintained their cautious tone with regards to the energy demand outlook.  Saudi Arabia’s energy minister Prince Abdulaziz bin Salman reiterated that the recovery in the oil market was  far from complete and noted that they will continue with the flexible approach that serves them best.

Additionally,  Russian Deputy Prime Minister Alexander Novak said that the situation on the global oil market has improved but acknowledged there are lots of downside risks, especially with the surging number of coronavirus cases in Europe.

Meanwhile, the data published by Baker Huges showed on Thursday that the number of active oil rigs in the US rose to 337 from 324 last week.

WTI daily chart