UPDATE 12-Oil scales 1-year peak as OPEC+ rolls over output for April

Reuters

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    * Saudi to choose when to phase out reduction in coming
months
    * Brent, U.S crude futures hit highest since January 2020
    * Russia allowed small increase to meet local demand
    * Yemen's Houthis say they fired missile at Saudi Aramco
site

 (Updates with settlement prices, adds graphic and details)
    By Arpan Varghese
    BENGALURU, March 4 (Reuters) - 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  LCOc1  rose $2.67, or 4.2%, to settle at $66.74
a barrel, after rising to $67.75, its highest since January
2020. 
    U.S. crude futures  CLc1  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.
 urn:newsml:reuters.com:*:nL2N2L20UQ  urn:newsml:reuters.com:*:nS8N2L20E5 
    "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.  urn:newsml:reuters.com:*:nR4N2K204Q urn:newsml:reuters.com:*:nS8N2L20E2
    "Russia aside, the biggest winner of an OPEC+ rollover is
the U.S.. With such price levels, which are now boosted even
more after the news of a possible rollover consensus, the U.S.
can comfortably increase production, even from costly break-even
projects," Tonhaugen added.
    Also supporting sentiment, Yemen's Houthi forces said they
had fired a missile at a Saudi Aramco facility in Jeddah. 
 urn:newsml:reuters.com:*:nL2N2L209E  

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Oil prices rally as OPEC+ rollover output cuts    https://tmsnrt.rs/3uUcInF
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 (Reporting by Arpan Varghese and Sumita Layek in Bengaluru;
Additional reporting by Bharat Govind Gautam, Naveen Thukral and
Florence Tan
Editing by Marguerita Choy and David Gregorio)
 ((Shadia.Nasralla@thomsonreuters.com; +44 207 542 5083; +44 778
99 43141; Reuters Messaging: Reuters Messaging:
shadia.nasralla.reuters.com@reuters.net))

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