Fri, September 30, 2022

Oil increased due to a hope of OPEC+ supply curb extension

opec

Oil was up Wednesday morning in Asia, cutting back losses from the previous session ahead of an Organization of the Petroleum Exporting Countries and partners (OPEC+) meeting to arrange production levels for May.

Brent oil futures were up 0.55% to $64.52 by 12:52 PM ET (4:52 AM GMT) and WTI futures increased 0.59% to $60.91.

Investors are mainly betting that OPEC+ affiliates will consent to continue their supply curbs into May when they convene on Apr. 1.

Commonwealth Bank commodities analyst Vivek Dhar informed Reuters that the expectation is OPEC+ will confirm supply discipline, so that’s turning the market.

Saudi Arabia, the second-largest oil producer globally, is also reportedly provided to back an extension of the supply cuts into June, including its deliberate amount.

OPEC+ in February increased its cut of just over 7 million barrels per day (BPD) of supply, a shock move at a time when fuel demand seemed to be improving. While Saudi Arabia made an additional voluntary cut of 1 million BPD, Russia and Kazakhstan were given small exemptions.

The Traders Expectations on OPEC+ meeting

The OPEC+ meeting comes following a month of whipsawing oil prices as increasing coronavirus cases pointed to restrictive measures being contracted and expanded fuel demand recovery worries.

Europe is currently dealing with the third wave of problems and a slow vaccine rollout, with numbers increasing in India and Brazil. Investors are pitting this information versus the U.S.’s more optimistic growth outlook, where the vaccination program has been improving quicker.

Dhar replied that the reason is even less so to add supply given what’s happened after then. So they think OPEC+ will maintain that order in their meeting.

Continuing to argue that the cartel should hold back supply, U.S. crude oil supply data from the American Petroleum Institute announced a build of 3.91 million barrels for the week closing Mar. 26. Estimates prepared by Investing.com foretold a 400,000-barrel build, while a 2.927-million-barrel build was written for the previous week.

Supply data from the U.S. Energy Information Administration is expected later in the day.

YOU MAY ALSO LIKE

UAE Ministry of Economy has new offices in the Metaverse. The UAE

The Dollar Falls As The Yield Curve In The U.S. Flattens

Early on Thursday in European trade, the U.S. dollar continued its upward

Mkr

MKR’s price has risen by 10.94% to $756.58 as of right now.

COMMENTS

Leave a Comment

Your email address will not be published.

BROKER NEWS

FxPro UK Reports 48% Revenue Drop in 2021

FxPro UK Limited, the FCA-regulated subsidiary of the Cyprus-based group, published its financials for the fiscal year 2021, ending on December 31. The report showed that the broker’s revenue decreased 48 percent to

BROKER NEWS

Broker News

FxPro UK Reports 48% Revenue Drop in 2021

FxPro UK Limited, the FCA-regulated subsidiary of the Cyprus-based group, published its financials for the fiscal year 2021, ending on December 31. The report showed that the broker’s revenue decreased 48 percent to £900,365