L ‘OPEC + It also leaves the cut in production quotas for April unchanged. This was announced by the organization itself at the end of the summit with its allies. The memo stated that “the ministers agreed to continue production levels in March for the month of April.” A small exception has also been approved for Russia and Kazakhstan, where they will be able to increase production by 130 and 20 thousand barrels per day, respectively, due to seasonal consumption trends.
A new group meeting will be held next month to decide on production levels from May onwards.
OPEC, production unchanged in April
A race for oil At 5% After the decision of OPEC and its allies. Thus recover the morning losses. Curves futures rose $ 3.06, or 4.8%, to $ 67.13 a barrel, while West Texas Intermediate rose $ 3, or 4.7%, to $ 64.17 a barrel, the highest level since January 2020.
Saudi Arabia has extended its voluntary reduction by one million barrels per day for one month. Some analysts had expected an increase in production of 500,000 barrels per day.
Before the decision, UBS oil analyst Giovanni Stonovo commented:It will be a big surprise if OPEC maintains current production in April … This move will lead to a decrease in inventories at a high rate, and with it oil prices will remain strong and rise in the coming months.“.
In the United States, despite a record high of more than 21 million barrels of crude oil last week, oil prices fell to their lowest levels in more than 30 years. However, this was due to an unexpected event: the Texas Frost.