Oil Costs up 5 percent on Saudi and OPEC Surprise
Saudi Arabia and OPEC Agree to Gain From Growing Output
$70 for Brent Crude Ahead?
Like most and like myself, this has been the cheapest likely outcome using the consensus set to get a 500kbpd growth in manufacturing. But that is what's proven and consequently, WTI and Brent crude stocks are up a lofty 5 percent with the latter in the maximum level since January 2020. In light of the result, there appears to be little in the way that avoid Brent crude stocks hitting $70 at the very short term.
It's important to note that the reports are still emerging with a formal announcement yet to be finalised
Details: Now that the dust has settled, the facts are that Saudi Arabia will unveil its own voluntary 1mbpd production during April before slowly bringing back distribution in May. Meanwhile, the OPEC+ associates may also refrain from trekking manufacturing with exemptions given to Russia and Kazakhstan, who'll be permitted to increase output by 130kbpd and 20kbpd respectively.
Tracking OPEC Developments
For tracking OPEC keep tabs #OOTT on Twitter and especially tweets out of OPEC watcher, Amena Bakr.
Economy Reaction: In reaction to the headlines which both Saudi Arabia and OPEC+ were contemplating rolling over manufacturing, oil prices climbed sharply in the subsequent hour, breaking over $67/bbl. Alongside this, the increase in oil prices watched commodity related currencies (CAD, NOK, RUB) induce greater. Looking forward, provided the surprise statement, oil prices stay firmly tilted to the upside down with all the doors now available for an evaluation of 70/bbl. In the same way, USD/CAD has violated short-term aid at 1.2580-85, increasing the odds of a movement to 1.25.