Earlier previews of the OPEC+ meeting on April 1 are here:
- JP Morgan on OPEC+ ... existing output cuts to be maintained
- This time around another rollover of existing output cuts is expected.
- OPEC (especially Saudi Arabia) have been cautious on the demand recovery and that will not change at this meeting:
- Saudi Arabia is prepared to support extending oil cuts by OPEC and allies into May and June
- Four reasons oil faces headwinds
A snippet from Commonwealth Bank of Australia (this via Reuters):
- "The expectation is OPEC+ is going to show supply discipline, so that's pivoting the market"
OPEC+ last month surprised the market by agreeing to agreed to extend supply curbs ...
- "Given what's happened since then, the rationale is even less so to add supply. So we think they'll maintain that discipline in that meeting"
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As some background ahead of tomorrow's meeting of oil ministers:
Oil price concerns are based on:
- extended pandemic lockdowns in Europe
- slow vaccine rollouts and rising COVID-19 cases in India and Brazil
With some glimmers of positivity from:
- growing optimism on growth in the United States
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Existing curbs
- OPEC & non-OPEC producers have cut just over 7 million barrels per day (bpd)
- Saudi Arabia has made an additional voluntary reduction of 1 million bpd
