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OPEC+ surprises with more oil output, market surprises with higher prices

OPEC+ surprises with more oil output, market surprises with higher prices Supply will be put on market over next 3 months; US energy secretary speaks with Saudi counterpart Photo: Jim Allen/FreightWaves For the second consecutive month, the Organization of Petroleum Countries and the non-OPEC oil exporters in the “plus” group that together make up OPEC+ surprised oil markets, this time with a decision to increase output. The second surprise from the virtual OPEC+ meeting Thursday is that oil prices finished the trading day near the highs of the day’s activity. Ultra low sulfur diesel on the CME commodity exchange settled at $1.8325/gallon, the highest settlement since the March 17 settlement of $1.9061/g. The increase for the front month May contract was 6.18 cents/g.

OPEC+ on high alert amid market jitters

WORLD / MID-EAST Oil producer alliance expected to extend output cuts By AFP Published: Apr 01, 2021 07:18 PM Oil producing countries grouped together under the OPEC+ alliance led by Saudi Arabia and Russia were expected to agree an extension to their current output cuts at a meeting on Thursday. The producer alliance is virtually guaranteed to extend current oil cuts into May, according to Stephen ­Brennock of PVM Oil Associates, reflecting a widespread view among analysts. It may even go a step further and prolong supply curbs into June, he added, with the possibility that Russia and Kazakhstan may be given some small leeway to increase output as happened earlier in the year.

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