Oil rises as OPEC+ seen sticking to policy despite India COVID surge
Oil prices edged higher on Tuesday as OPEC+ was expected to stick to existing plans to boost oil output slightly from May 1, suggesting it does not see a lasting impact on demand from India’s coronavirus crisis.
The group has also ditched plans to hold a full ministerial meeting on Wednesday, sources said. A technical meeting on Monday had voiced concern about surging COVID-19 cases but kept its oil demand forecast unchanged.
Brent crude settled 1.17% higher at $66.42 per barrel after climbing to a session high of $66.45.
U.S. oil advanced 1.63% to settle at $62.94 per barrel.
“Traders do not want to miss out on a potential bullish OPEC+ meeting so a limited optimism is reflected in prices,” said Bjornar Tonhaugen of Rystad Energy.
The producer group known as OPEC+ is set to slightly ease oil output cuts from May 1, under a plan agreed before the coronavirus surge in India.
Russian Deputy Prime Minister Alexander Novak said on Tuesday the situation on the oil market was “positive and oil demand was recovering”, although the rapid spread of the coronavirus in India and Latin America was a concern.
Reference: CNBC
Thai
Eng