Oil Flirts With $70 After The OPEC+ Surprise

Global Oil Prices Storm To Nine-month High

Brent is now flirting with the $70 mark after OPEC+ shocked markets once again by refusing to bring more oil production online.

Oil skyrocketed on Thursday after OPEC+ decided to hold off on easing production cuts for another month, surprising the oil market. WTI and Brent shot up more than 4%. During early trading on Friday, Brent surpassed $69 per barrel.

READ ALSO:   Oil Prices Go Past $50pb As Explosion Rocks Oil Ship Near Saudi Port

OPEC+ extended the cuts through April, aside from a slight increase allowed for Russia and Kazakhstan, due to seasonal consumption patterns. Even Saudi Arabia decided to keep its 1 mb/d of voluntary cuts in place. The surprise news led to a price surge.

“One of the reasons the market is continuing to react positively today could be that OPEC’s own balances suggest very steep draws,” Rystad Energy said in a statement.

READ ALSO:   Oil Crisis/OPEC+ Meeting: Anxiety As Prices Dip After Hitting $40 Per Barrel...

Big Oil is looking at 2021 with increased optimism, mostly because oil prices have rallied in recent weeks. Moreover, the ultra-conservative capital spending plans and the huge cost cuts have allowed international oil companies (IOCs) to materially lower their cash flow breakevens. These factors are set to result in a record cash flow for the biggest oil firms this year if oil prices average $55 per barrel, Wood Mackenzie said in new research.

READ ALSO:   Oil Demand To Hit 100 Bpd In 2018 Q4, OPEC Predicts

Credit: Oilprice.com

Subscribe to Our VIP Newsletter

Previous articleJust In! Bandits Invade Kaduna Airport, Abduct 9 From FAAN Quarters
Next articleDavido’s Feature In Coming 2 America Thrills Nigerians [Reactions]

The New Diplomat stands for ethical journalism, press freedom, accountable republic, and gender-equity. That is why at The New Diplomat, we are committed to speaking truth to power, fostering a robust community of responsible journalism, and using high quality polls, data, and surveys to engage the public with compelling narratives about political, business, socio-economic, environmental, and situational dynamics in Nigeria, Africa, and globally. From our insightful reports of political issues to our riveting investigations and analyses of business, socio-economic, and cross-cutting sectors, The New Diplomat remains ever committed to investigative reporting and ethical journalism. Support and partner with The New Diplomat today, to guarantee a positive future for all under an atmosphere of free press!


Please enter your comment!
Please enter your name here