Thursday, March 04, 2021

Oil Jumps On Shocking OPEC+ Move As Saudis Brush Off Shale; 'Drill, Baby, Drill, Is Gone Forever'

The Organization of the Petroleum Exporting Countries and key partners will extend most of the current output cuts, sending oil prices soaring Thursday. Most OPEC+ members will continue current production quotas in April, including Saudi Arabia's earlier decision to curb 1 million barrels per day of its own output. Russia and Kazakhstan have exceptions and can increase production by 130,000 bpd and 20,000 bpd, respectively, "due to continued seasonal consumption patterns." "The Saudi decision to extend their voluntary 1 million bpd cut was shocking as it leaves them vulnerable to losing market share next month when the oil market is in deficit by a couple million barrels," Edward Moya, a market analyst at Oanda, wrote in a note. "This outcome was not expected and pretty much guarantees a tight market up through the summer."...MORE

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