Oil futures have gone lower on Tuesday, with traders waiting for a meeting later this week of the Oil Exporting Countries Organization OPEC) and its allies that will decide how much production they will restore in the next month.
Robbie Fraser, the global research & analytics guru of Schneider Electric, stated in a market update that “crude prices are being examined increasingly as the market weighs the potential economic impact of supplies.
He stated, including the end of Saudi Arabia’s unilateral 1 million barrel daily cuts at the end of this month, “Top of the OPEC+ list is likely to continue scale back record cuts within the months to come.”
“Currently, US production will rapidly rebound from disruptions in February due to extreme winters, but longer-term output will require time to respond to higher prices,” Fraser said.
The crude West Texas Mid April CL.1, 0,58% CLJ21, 0,56% decreased 6 cents or, 0,1% to $60,58 per barrel on the New York Mercantile Exchange, but in the course of the session it was up to $61,21.
May Brent’s crude BRN00, which is 0.44% BRNK21, was down 7 cents, 0.1%, and ICE Futures Europe was down 63.62$ a barrel after the intraday high of 64.13$. The two grades were reduced on Monday.
“Much of the positive news has been already priced in,” Eugen Weinberg, Commerzbank Commodities Analyst, told a recent price action.
A survey in Reuters estimated that in February OPEC produced 24.89 million barrels per day; from January, the first monthly fall since June, it produced 870,000 barrels per day. In February OPEC+ decided to keep its output steady, while in February and March Saudi Arabia unilaterally decreased its output by 1 million barrels a day. Saudi Arabia has found that in February, production was reduced by 850,000 barrels a day.