04.12.202009:16:00UTC+00Oil Prices Rally On OPEC Deal

Oil prices jumped on Friday as OPEC and Russia cleared the hurdle of exiting the current oil output cuts in a coordinated way.

Benchmark Brent crude climbed 1.7 percent to $49.53 a barrel, while West Texas Intermediate crude futures were up 1.6 percent at $46.37.

OPEC and other oil producing countries such as Russia and Saudi Arabia agreed to increase output beginning next month at a much slower pace to overcome coronavirus-induced demand concerns.

The oil producers have reached an agreement to pare current production cuts from January by 500,000 barrels per day and agreed to hold monthly meetings to assess market conditions and decide on further adjustments for the following month.

"This is a mature agreement.... We will tweak whenever it is necessary and possible," Saudi Arabia's Minister of Energy Prince Abdulaziz Bin Salman said on the sidelines of the 12th OPEC and non-OPEC Ministerial Meeting held yesterday.

Meanwhile, there are greater hopes for the oil demand recovery amid signs that U.S. may be closing in on new stimulus.

The dollar eased as a bipartisan, $908 billion coronavirus aid plan gained momentum in the U.S. Congress, with conservative lawmakers expressing their support.