The U.S. oil benchmark, WTI Crude, jumped early Thursday to over $ 64 a barrel, climbing more than 5%, after OPEC + sources began telling reporters the coalition could be about to accept. do not increase their collective oil production in April.
WTI crude prices jumped 5.06% to $ 64.21 at 11:18 a.m. ET on Thursday. Brent Brent prices jumped above $ 67 a barrel, to $ 67.17, up 5.10%, after OPEC + sources began leaking information about the ministerial meeting in OPEC + course.
According to delegates, the discussion now revolves around a postponement of production for all members except Russia and Kazakhstan, “who will be allowed to increase production by 130,000 and 20,000 respectively,” Amena Bakr, deputy office manager and chief correspondent of Opec at Energy Intelligence, tweeted.
Saudi Arabia, the largest producer and de facto leader of OPEC, is proposing a postponement of the current level of cuts to April and May, according to various reports. In addition, Saudi Arabia will maintain its additional production of 1 million barrels per day (b / d) in April as well. This additional reduction was originally scheduled to last only in February and March.
Russia, as well as Kazakhstan, were pushing for an increase in collective production. According to various sources and reports, Russia, leader of the group of non-OPEC countries in the OPEC + pact, has been pushing for an increase in April to meet strong domestic demand for fuel.
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However, as expected, Saudi Arabia was calling for a more “cautious” approach, with Saudi Energy Minister Prince Abdulaziz bin Salman saying at the meeting, as reported by Bloomberg:
“At the risk of sounding like a stuck disc, I again urge caution and vigilance.”
“Before we take the next step forward, let’s be sure that the glow we see up front is not the beacon of an oncoming express train,” Prince Abdulaziz bin Salman said.
The market expected an entirely different outcome from today’s OPEC + meeting, including Saudi Arabia reversing its further cut and the group increasing production by 500,000 bpd.
It seems Prince Abdulaziz bin Salman was right when he said two weeks ago: “Those who are trying to predict the next OPEC + move, to those I am saying, are not trying to predict the unpredictable.”
By Tsvetana Paraskova for OilUSD
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