Oil production to increase in Q2

By: Miguel A. Rodriguez

18:22, 05 April 2021

OPEC+ pushes for additional oil production

Some of the world’s powerful oil producers’ group, known as OPEC+, decided to curb the existing output cuts starting May gradually.

According to the group, 350,000 more barrels will be added, while another 350,000 is expected to hit the markets in June. Moreover, starting from July, the production will be increased by 450,000 barrels per day.

Currently, the OPEC+ group is cutting more than 7 million barrels per day to stabilize the oil prices and reduce oversupply. In May, Saudi Arabia voluntarily will add one more million barrels per day to those cuts.

The alliance’s decision came after the Suez Canal reopened to traffic and the ongoing COVID-19 crisis still threatens the demand outlook, with multiple countries imposing lockdowns again to curb the infection.

Oil prices fluctuated during the past weeks, swinging between $62 per barrel to $70. It managed to stabilize at around $64 a barrel.

Following the OPEC+ meeting, Brent oil traded at $65.08 per barrel, while Crude oil was at $61.63 a barrel.

Source: cnbc.com

Share this article

The information presented herein is prepared by CAPEX.com/eu and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.                                                                                                                            Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience, or current financial situation.Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance and forecasts are not reliable indicators of future results.