Sat, December 03, 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

dollar

The Dollar Remained Stable The dollar held steady but was pinned near

The Optimism of Slowing Interest Rate Only Goes So Far

The all-important jobs report caused a lot of volatility near a key

Oil refinery

Oil Futures Prices Were Mixed Oil futures were mixed on Friday, buoyed

COMMENTS

Leave a Comment

Your email address will not be published.

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

Consob Blocks 4 More Illegal Trading Platforms

Italy’s financial market watchdog, Consob, has blocklisted four more websites for operating illegally in the country. The number of fraudulent blocklisted platforms reduced to 805 is the ongoing effort by authorities to reduce

BROKER NEWS

Broker News

Consob Blocks 4 More Illegal Trading Platforms

Italy’s financial market watchdog, Consob, has blocklisted four more websites for operating illegally in the country. The number of fraudulent blocklisted platforms reduced to 805 is the ongoing effort by authorities to reduce illegal