OPEC+ Status Quo Relief Oil Bulls

At the time of writing this report, the British-based oil contract, Brent crude futures was up by 0.8%, to trade at $64.60 a barrel, after gaining more than 2% yesterday. Also, the American-based oil contract, West Texas Intermediate crude futures was up by 0.8% to trade at $61.74 a barrel.

Oil bulls are roaring loud, as leading oil producers seem bent on maintaining the status quo instead of raising output for April, as a recovery in global energy demand still looks fragile due to the damaging effect of the COVID-19 effect on the global economy.

Looking deep into Thursday’s price action, reveal oil bulls fighting with much positivity in breaching the $65 a barrel price levels and thus settles above it, which halters the negative scenario that the relative bullish trend in play is suffering from exhaustion.

Sequel to these sudden turnarounds in the world’s most liquid derivatives market, oil bulls paused their run on surging U.S treasury yields and growing uncertainty over OPEC+ resolve in keeping supply outputs under check but that changed as oil bulls gathered enough steam after it was reported that OPEC+ alliance consider keeping oil production cuts from March in place in April, meaning it’s very unlikely to see Brent Crude futures trading below $60 a barrel in Q1.

Still, a significant number of oil experts ponder on how long such cuts would last, as it still seems there is not much appetite for the black viscous hydrocarbon yet, and such current oil output cuts are taking their toll on the economies of most OPEC+ members, meaning it would require extra efforts in seeing the level of compliance sighted in Q4, 2020.