Oil stocks are in focus after several OPEC+ countries, led by Saudi Arabia, announced voluntary cuts from May 2023 to end-2023 of nearly 1.1mb/d. Oil market is expected to get tighter after the OPEC+ output cut couple with higher oil prices. Indian OMCs are seen likely to be under pressure.
Oil’s relentless surge above $125 a barrel threatens to stoke inflation across Asia, forcing central banks to decide whether to respond to higher prices with tighter policy, or hold off amid the blow to economic growth.
Concerns over tightening supplies drove prices higher as peace talks between Russia and Ukraine ended with officials heading back to capitals for further consultation, suggesting conflict resolution is not imminent.