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Oil prices rose on Thursday, the day after the announcement of a slight drop in US crude inventories and after the start of the long-awaited OPEC + summit.
At approximately 10:35 AM, a barrel of North Sea Brent crude for delivery in June, the first day to be used as the reference contract, was $ 63.43 in London, up 1.10% from the previous day’s close.
In New York, the price of a barrel of West Texas Intermediate crude for May rose 1.28% to $ 59.92.
On Thursday, the market is only looking forward to the ministerial summit of the alliance made up of members of the Organization of the Petroleum Exporting Countries (OPEC) and its 10 allies, known as OPEC +.
The meeting was started by videoconference shortly before 9:00 AM, with the possible extension of the current cuts in the opinion of analysts.
“With OPEC +, we can expect anything,” said Luqman Otunuja, an analyst at FXTM.
The coalition leaves about 7 million barrels underground every day. Added to this is the million people cut by the Kingdom of Saudi Arabia, so that the market is not flooded with black gold that it cannot absorb due to the economic damage caused by the COVID-19 pandemic.
The market is wondering about the future of this Saudi “gift”. As for Russia and Kazakhstan, will they again have the right to marginally increase their production?
The Saudi Energy Minister and the leader of the coalition, Abdulaziz bin Salman, commented in an opening speech at the meeting published on the organization’s website: “The global situation is far from homogeneity and recovery is far from complete.”
Russian Deputy Prime Minister Alexander Novak, in charge of energy, who was also speaking at the start of the summit, gave a more optimistic speech in which he welcomed the “results” of vaccination campaigns around the world.
On Thursday, investors also absorbed the decline in crude oil inventories in the United States last week, which was announced the previous day by the US Energy Information Agency (EIA) in its weekly report.
However, it fell to a smaller extent than analysts had expected, in the range of 900,000 barrels.