Oil rises ahead of OPEC + decision on crude production

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Oil futures rose on Thursday, finding support ahead of a decision by the Organization of the Petroleum Exporting Countries and its allies on how to tighten existing production restrictions starting next month. West Texas Intermediate crude for May delivery CL.1, + 0.27% CLK21, + 0.27% rose 19,337 cents, or 0.3%, to $ 59.33 a barrel on the New York Mercantile Exchange. June Brent BRN00 crude, + 0.29% BRNM21, + 0.29%, the global benchmark, rose 19 cents, or 0.3%, to $ 62.93 a barrel on ICE Futures Europe.

“Thanks to the new round of virus infections in some major regions of the world and the extension of lockdowns in parts of Europe, it appears that the only options are a renewal of existing cuts in May and a gradual increase in production from back then, ”Fawad Razaqzada, an analyst at ThinkMarkets, said in a note. “This result has likely been discounted.” There is an external possibility that OPEC + may agree to allow production to increase, which would surprise the market and likely trigger the sale even if the increase is small. “So no matter how you look at it, the risks are skewed to the downside as a turnaround is expected,” he said. US Energy Secretary Jennifer Granholm tweeted late Wednesday that she had spoken with Saudi Arabia’s Energy Minister Abdulaziz bin Salman al-Saud, and had “reaffirmed the importance of international cooperation to secure sources of energy. affordable and reliable energy for consumers. ”