OPEC subtraction and extension… Oil prices soaring 5 or more

OPEC Plus, an agreement between the Organization of Petroleum Exporting Countries (OPEC) and major non-OPEC oil-producing countries such as Russia, continues to cut production. Oil prices, which had been unnoticed for a while ahead of the OPEC+ meeting, are rising.

According to Energy Intelligence and Bloomberg News, on the 4th (local time), OPEC+ decided to continue production cuts from the online video conference that day until next month.

OPEC+ plans to allow some increase in production in Russia and Kazakhstan. It is reported that Russia’s average of 130,000 barrels per day, and Kazakhstan’s 20,000 barrels per day.

This is similar to the agreement in early January. At the time, OPEC+ agreed to produce an average of 65,000 barrels per month for two months in February and March, and 10,000 barrels per month for Kazakhstan.

Saudi Arabia continues its own production cuts of 1 million barrels per day in April. One source told Energy Intelligence, “Saudi Arabia will gradually stop reducing production by an average of 1 million barrels a day from May.”

This production cut maintenance measure is effective for one month. OPEC+ plans to hold a production cut-off meeting again early next month and decide whether to adjust the cut-off amount.

In the news of the extension of production cuts, crude oil prices surged nearly 5% right after the OPEC+ meeting was reported.

As of 2:10 am, April of Western Texas Crude Oil (WTI) was traded at $64.73 per barrel on the New York Commercial Exchange (NYMEX). May of Brent oil was sold on the London ICE Futures Exchange for $67.62 a barrel. Both types of oils posted the highest prices since October 2018. Compared to the previous trading day, each rose by 5.5%.

Reporter Sun Han-gyeol [email protected]

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