Oil price continued to increase on Friday due to OPEC+ decisions

 

Oil prices continue to rise on Friday due to OPEC+ decisions after the rise in WTI prices the day before to a maximum since April 2019, Interfax reports.

The ministers of the OPEC+ countries refused to increase oil production in April by 500 thousand barrels per day (bpd), and Saudi Arabia extended its own voluntary restrictions of 1 million bpd for another month, promising to return these volumes to the market when sees fit. Russia and Kazakhstan again received an exception to the rule and may increase production from April.

Thus, next month the market will receive 10 times less additional volumes than expected – only 150 thousand bpd.

"The OPEC+ decision shows that countries are very cautious about the outlook for demand," said Anna-Louise Hittle, an analyst at Wood Mackenzie.

The cost of May Brent oil futures on the London stock exchange ICE Futures by 7:10 a.m. Kyiv time on Friday amounted to $67.3 per barrel, which is $0.56 (0.84%) higher than the price at the close of the previous session. As a result of trading on March 4, these contracts rose by $2.67 (4.2%) to $66.74 per barrel, the maximum since February 25.

The price of futures for WTI crude oil for April in electronic trading of the New York Mercantile Exchange (NYMEX) by this time reached $64.34 per barrel, which is $0.51 (0.8%) higher than the level at the close of the market on Thursday. At the end of the previous session, these contracts rose by $2.55 (4.2%) to $63.83 per barrel, which is the highest value since April 30, 2019.

Tags: oil, RF, OPEC+, negotiations, price, Saudi Arabia, decline in production, economy, oil market

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