Oil prices jump on hope of OPEC+ retaining supply cuts
- 04 Mar 2021
Gulf Today Report
Oil prices advanced on Thursday on the likelihood of OPEC+ producers increasing output at their meeting later today, US fuel inventories decline.
Brent crude futures added 61 cents, or 1%, to $64.68 a barrel, as of 04:28 GMT while US West Texas Intermediate (WTI) crude futures gained 28 cents or 0.5% to $61.56 a barrel.
The Organization of the Petroleum Exporting Countries (OPEC) and allies, OPEC+, are considering rolling over production cuts into April instead of raising output, as a recovery in oil demand remains fragile due to the coronavirus crisis, said sources.
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The market has been hopeful for OPEC+ to reduce productions cuts by 500,000 barrels per day from April.
In a report, ANZ said, "OPEC+ is currently meeting to discuss its current supply agreement. This raised the spectre of a rollover in supply cuts, which also buoyed the market."
US crude oil stockpiles rose above 21 million barrels in the previous week due to Texas Freeze causing a decline in refining.
According to Stephen Innes, "perhaps more interesting is the lack of US shale (production) response to the higher crude oil prices, which is favourable for higher prices."
