Crude Oil Bounces $2 on OPEC Uncertainty
Skerdian Meta•Thursday, March 4, 2021•1 min read
Today is the second day of the OPEC+ meeting. There were some expectations for an increase in production, after the 9.5 million cut for more than a year. But, it seems like they are uncertain what to do next. The world economy has recovered to some degree, particularly manufacturing, but travel remains minimal, which is still keeping the demand for Oil subdued. Crude Oil has retreated somewhat after bouncing $ 2 higher on OPEC’s uncertainty, but remains bullish.
Comments in the OPEC public part:
- Urges ‘caution’ and ‘vigilance’
- Uncertainty of oil-market recovery persists
- OPEC+ and Saudi cuts have accelerated rebalancing
Russia’s Novak:
- Oil market hasn’t fully recovered yet we are in a better place
WTI crude is at the highs of the day, up $1.20 to $62.47. The market is reading the signals about ‘caution’ and keeping powder dry as a sign that OPEC won’t flood the market. There’s still so much uncertainty about today’s meeting but this strong market response so far indicates to me how much money is on the sidelines and waiting to pile into oil.
Oil journalist Reza Zandi writes: “An informed source just said that some in the OPEC+ are concerned that Russia might ask for an increase bigger than 500 thousand bpd for April 1st, and to that end pressure others. Novak too emphasized the good conditions in the market.
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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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