Time.news – As happened in January and February, OPEC + decides to wait for economic recovery to strengthen and for Covid vaccination plans to extend globally before increasing crude oil production on the world market. “We must act with extreme caution because today the only certain thing is uncertainty”, warned the energy minister of Saudi Arabia, Prince Abdulaziz bin Salman during the meeting of the 23 OPEC and non-OPEC producer countries. “The situation in the oil market has improved but the prospects for a recovery in demand remain uncertain,” he added.
In conclusion, all the countries of the ‘enlarged’ OPEC are careful not to make the clamorous mistake they made exactly one year ago. It was March 6, 2020, a few days later the world would have stopped due to the pandemic and at OPEC + the rupture of negotiations between Russia and Saudi Arabia was staged, which led to the so-called ‘price war’. The two countries began to flood the market with crude oil and prices, also thanks to lockdowns around the world, began to collapse with WTI futures which even went negative.
Today the world is different and the two super powers of black gold have also learned their lesson. So that Riyadh, to set a good example, will continue to cut 1 million barrels a day voluntarily, even in April, as well as Opec + will leave the levels unchanged. The Saudi move was welcomed by the other member states of the organization. “The ministers – reads the final communiqué – acknowledged, with gratitude, the significant voluntary reduction of the offer from Saudi Arabia which has helped to support market stability. The ministers also appreciated the fact that Riyadh has decided to extend the 1 mbd cuts for April 2021, demonstrating his leadership and flexible approach “.
The cuts will therefore continue to be equal to approximately 7 million barrels in April, to which the extra Saudi million must be added.. The next summit will be held on April 1st. Partially exempted are Russia and Kazakhstan “which will be authorized to increase production by 130,000 and 20,000 barrels per day respectively, for seasonal consumption reasons”.
Prices have shot up with WTI gaining 5% to $ 64.39 a barrel and Brent rising 4.8% to $ 67.16.