OPEC, allies keep oil output unchanged, prices jump

FRANKFURT, Germany (AP) — Members of oil producer cartel OPEC and allied countries have agreed to leave most of their existing oil production cuts in place as the spread of new coronavirus variants prolongs concerns about economic weakness.

The decision taken Thursday after a virtual meeting pushed the price of crude oil sharply higher in global markets. The U.S. contract spiked 5.6% higher to $64.70 a barrel.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

FRANKFURT, Germany (AP) — Members of oil producer cartel OPEC and allied countries are cautiously weighing an increase in production now that prices have recovered to near their pre-pandemic levels.

Their online meeting Thursday takes place against the background of more confidence that prices have steadied since a precipitous fall last year, though concerns remain that the spread of new variants of the coronavirus could hurt demand again.

The energy minister of Saudi Arabia, the de facto leader of the member countries, urged “caution and vigilance” in his opening statement, saying that recovery would very much depend on vaccine rollouts and success in containing the pandemic. Abdulaziz bin Salman said that “while there is no doubt that the oil market has improved" since members last met, “the anxiety surrounding the recovery has not receded.”

The so-called OPEC Plus - which includes countries like Russia that are not part of the cartel but have been coordinating production in recent years - made deep cuts in output in 2020 to stave off a collapse in prices.

As more economic activity returned around the world, the group decided to add back 500,000 barrels per day in December, and analysts said it was possible the gathered ministers could raise production by another 500,000 barrels...