BENGALURU: Oil rallied more than 4% on Thursday, hitting its highest in over a year, after OPEC and its allies agreed to keep production unchanged into April, reasoning that the demand recovery from the coronavirus pandemic was still fragile.
Brent crude rose $2.67, or 4.2%, to settle at $66.74 a barrel, after rising to $67.75, its highest since January 2020.
US crude futures ended $2.55, or 4.2%, higher at $63.83, having also scaled a January 2020 peak, at $64.86.
"OPEC surprised us... The message OPEC is sending market is they're quite willing to see oil prices run hot and ultimately, go a long way in reducing the inventory overhang built last year because of COVID-19," said Bart Melek, head of commodity strategies at TD Securities.
Some analysts had predicted OPEC+, an alliance of the Organization of the Petroleum Exporting Countries and other major producers, would increase output by about 500,000 bpd.
The group's leader Saudi Arabia said it would extend its voluntary oil output cut of 1 million barrels per day (bpd), and decide in coming months when to gradually phase it out.
"There is one thorn to the bullish cocktail though and very few are surprised. Russia wants to boost output," head of oil markets at Rystad Energy, Bjornar Tonhaugen said in a note.
Russia was allowed to raise output by 130,000 bpd in April and Kazakhstan by another 20,000 bpd.
"Russia aside, the biggest winner of an OPEC+ rollover is the US. With such price levels, which are now boosted even more after the news of a possible rollover consensus, the US can comfortably increase production, even from costly break-even projects," Tonhaugen added.
Oil scales 1-year peak as OPEC+ rolls over output for April
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Oil scales 1-year peak as OPEC+ rolls over output for April
- Brent crude rose $2.67, or 4.2%, to settle at $66.74 a barrel, after rising to $67.75, its highest since January 2020
- US crude futures ended $2.55, or 4.2%, higher at $63.83, having also scaled a January 2020 peak, at $64.86
Aramco’s 13% rally helps Saudi stocks post second weekly gain
RIYADH: Saudi Aramco extended its year-to-date rally to nearly 13 percent on Thursday, helping the Kingdom’s benchmark stock index secure a second straight weekly gain despite a weaker final trading session.
Saudi Aramco shares, which carry the heaviest weighting on the Saudi Exchange, closed at SR26.86 ($7.16), leaving the stock 12.72 percent higher since the start of 2026. The stock also remained 3.09 percent above last week’s close, even after falling 1.1 percent in Thursday’s session.
The rise in energy shares came as escalating tensions in the Middle East pushed oil prices above $100 a barrel, after attacks on tankers in the Gulf and the Strait of Hormuz heightened concerns over supply disruptions.
The Tadawul All Share Index maintained its weekly uptrend, rising nearly 1.07 percent week on week to close at 10,778.32, despite falling 0.45 percent in Thursday’s session. Compared with the first trading day of the year, the index has gained 4.01 percent.
Total trading turnover on the benchmark index reached SR5.05 billion at Thursday’s close, with 88 stocks advancing and 176 declining.
Aramco’s performance continued to anchor sentiment after the company reported adjusted net income of $104.7 billion for 2025 earlier this week, while net profit fell 12.1 percent year on year to $93.39 billion, compared with $106.25 billion in 2024, as lower crude prices weighed on earnings despite higher sales volumes across oil, gas and refined products.
On a March 10 earnings call, Aramco CEO Amin Nasser warned that prolonged disruption in the Strait of Hormuz could have severe implications for global energy markets. Roughly 20 percent of the world’s oil normally passes through the waterway each day, but shipments have been largely blocked.
“There would be catastrophic consequences for the world’s oil markets and the longer the disruption goes on ... the more drastic the consequences for the global economy,” he said.
“While we have faced disruptions in the past, this one by far is the biggest crisis the region’s oil and gas industry has faced.”
Saudi equities showed mixed performance in Thursday’s session. The MSCI Tadawul Index fell 5.99 points, or 0.40 percent, to close at 1,476.76.
The Kingdom’s parallel market Nomu gained 132.47 points, or 0.6 percent, to close at 22,370.4, with 38 stocks advancing and 34 declining.
On March 11, the International Energy Agency announced the release of 400 million barrels of oil from its reserves, the largest such move in its history. As part of that, the US said it would release 172 million barrels starting next week.
