The OPEC+ alliance will raise its collective output caps by 350,000 b/d in May, another 350,000 b/d in June, and 441,000 b/d in July.
At the same time, Saudi Arabia, which has been cutting an extra 1 million b/d on top of its quota to help bolster the market, will unwind it by 250,000 b/d in May, 350,000 b/d in June and 400,000 b/d in July.
The surprise decision still saw front-month Brent futures rise almost 4% to above $65/b in the wake of the meeting after choppy trading earlier in the day as OPEC+ members debated their options. We believe bullish balances with sequential draws in the second and third quarters will firm up prices, with alignment between strong fundamentals and reflation trade lifting crude to fresh highs of $75-$76/b Brent in June-July, S&P Global Platts Analytics said in a note.
Published on: Saturday, April 03, 2021
By: AFP
The Opec+ nations decided to gradually increase output.
LONDON: Oil producing countries grouped together under the Opec+ alliance led by Saudi Arabia and Russia agreed Thursday to only limited output increases as of next month.
Crude prices shot higher after the announcement, with the main international contract, Brent, rising 1.8 per cent to $63.84, while the US contract WTI jumped 2.1 per cent to 60.39.
In a statement issued after the meeting, the ministers noted “improvements in the market supported by global vaccination programmes and stimulus packages in key economies”.
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However, they also noted “the volatility observed in recent weeks warrants a continued cautious and vigilant approach in monitoring market developments.”
OPEC+ reaches deal to raise output from May OPEC+ still has deep production cuts in place New pandemic waves create uncertain demand outlook
NEW YORK, April 1 (Reuters) : Oil prices settled up more than $2 despite news that OPEC+ reached a deal to gradually ease production cuts from May.
Brent crude settled up $2.12, or 3.4%, to $64.86 a barrel. U.S. oil settled up $2.29, or 3.9%, at $61.45 a barrel.
OPEC+, which comprises the Organization of the Petroleum Exporting Countries, Russia and other allied producers, agreed to ease production curbs by 350,000 barrels per day (bpd) in May, another 350,000 bpd in June and further 400,000 bpd or so in July.
By Emmanuel Addeh
The Organisation of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, yesterday resolved to gradually ease its oil output cuts from May till July.
Sources said OPEC, which has been implementing deep cuts since oil prices collapsed in 2020 due to the COVID-19 pandemic, agreed to ease production cuts by 350,000 barrels per day in May, another 350,000bpd in June and a further 400, 000 to 450,000bpd in July.
Saudi Arabia is also expected to ease up on its own voluntary cuts of one million bpd, which it has been implementing in addition to reductions under the OPEC+ deal by 250,000bpd, 350,000bpd and 400,000bpd respectively.
by Bloomberg
|Friday, April 02, 2021
OPEC+ expressed growing confidence in the global economic recovery by agreeing to increase oil production gradually in the coming months.
(Bloomberg) OPEC+ expressed growing confidence in the global economic recovery by agreeing to increase oil production gradually in the coming months.
Before Thursday’s meeting, the cartel had been widely expected to maintain its cautious stance by rolling over the current supply cuts, just as it did last month. Yet Saudi Arabia and its allies showed they are more convinced now that fuel demand is on a firmer footing after a yearlong beating from the coronavirus.