Volatility alert: Crude Oil OPEC+ Meeting

Volatility alert:
Crude Oil OPEC+ Meeting


Dear xxx,

We want to bring to your attention the upcoming monthly OPEC+ meeting, taking place on Thursday the 1st of April.

On the agenda for discussion are the production quotas for May and June.

Saudi Arabia said earlier in the week that it had been in contact with some countries, and they favoured extending current quotas.

Riyadh also says it is ready to extend its own voluntary cuts by 1m bpd, in order to bring balance back to markets more quickly.

Russia is ready to support an extension of the current terms but may bargain for itself and Kazakhstan for some concessions on quotas.

What to look out for:

As we can see, this week, the news background was favourable to oil, supporting the price strengthening. At the same time, investors and traders should keep in mind that along with rising oil prices and production levels in the US, OPEC+ is becoming more divisive, which is negative for the market. It runs the risk of an uncontrolled production increase like we saw a year ago.