OPEC Meeting Expectations Drive Oil Barrel Prices Up

Written by Flavia Marinho

Published on 04/01/2021 at 15:47

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Organization of the Petroleum Exporting Countries and its allies, Opec+, Meet and Expectation is to Maintain the Level of Cuts in Production in February

With expectations that Opec and allies may limit oil production next month, barrel prices spiked to multi-month highs this Monday (12/04). The hope that vaccines could contain the coronavirus and lead to a strong economic recovery this year were also influencing factors.

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Brent crude rose US$ 0.76, or 1.47%, to US$ 52.56 per barrel at 8:11 AM (Brasília time). U.S. crude gained US$ 0.47, or 0.97%, to US$ 48.99 per barrel.

“The price movement today suggests the market is assuming that Opec+ will keep the level of cuts unchanged next month,” said ING’s commodities strategist, Warren Patterson.

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About the Opec+ Meeting of the Organization of the Petroleum Exporting Countries

Countries cut their production throughout 2020 in response to lower fuel demand. Now, Opec+ analysts foresee crude oil demand reaching 95.9 million barrels/day this year, representing an increase of 5.9 million barrels. The estimate for global economic growth for the year is 4.4%.

The majority of experts in Opec+ expressed opposition to an increase in oil supply starting in February during a meeting on Sunday, three sources told Reuters on Monday.

In December, Opec+ decided to increase production by 0.5 million barrels per day (bpd) starting in January, as part of a gradual increase of 2 million bpd this year, but some group members questioned the need for a new increase now due to the rapid spread of the coronavirus.

“The beginning of the new year is bringing drawbacks for the Opec+ group, as the risk balance for the recovery of oil demand has shifted,” said Harry Tchilinguirian, an analyst at BNP Paribas.

“The group of Opec+ producers may need to revise its agenda and postpone a new adjustment in voluntary supply cuts due to the latest news on Covid,” he added.

OPEC Meeting Expectations Drive Oil Barrel Prices Up

Organization of the Petroleum Exporting Countries and its allies, Opec+, Meet and Expectation is to Maintain the Level of Cuts in Production in February

Read Also

About the Opec+ Meeting of the Organization of the Petroleum Exporting Countries

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OPEC Meeting Expectations Drive Oil Barrel Prices Up

Organization of the Petroleum Exporting Countries and its allies, Opec+, Meet and Expectation is to Maintain the Level of Cuts in Production in February

Read Also

About the Opec+ Meeting of the Organization of the Petroleum Exporting Countries

With billions in loans, China is rebuilding Nigeria’s railway network from scratch, abandoning the British colonial tracks that have turned to scrap and creating a corridor of over 1,300 km to take the load off the roads of Africa’s largest economy.

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Forget petroleum-based asphalt: a Scottish company transforms 684,000 plastic bottles into one kilometer of road that is 60% more resistant and up to 10 times more durable, and the technology has already started replacing traditional asphalt in more than 30 countries.

A British company has installed in the middle of the ocean the world’s first floating platform that generates electricity 24 hours a day from the temperature difference between the surface and the depths of the Atlantic, without relying on wind or sun.

Austrian engineers have developed an inflatable concrete technology that transforms flat slabs into domes using only air pressure, eliminating scaffolding and temporary forms, and potentially changing the way bridges, tunnels, and curved roofs are constructed worldwide.

A robot named Walter does the work of five bricklayers per hour and can save the construction industry, where the average age of professionals is 46 years and almost no one wants to learn the trade anymore, in the United Kingdom.

The James Webb telescope spotted a planet 700 light-years from Earth with mornings full of sand clouds and nights with clear skies, the temperature difference between the two hemispheres reaches an impressive 170 degrees.

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