Oil Approaches US$70 a Barrel on OPEC+ Decision to Not Ease Supply Curbs

Oil has now approached $70 a barrel after the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC countries decided not to ease supply curbs despite recovery of oil prices amid the pandemic.

“The Ministers approved a continuation of the production levels of March for the month of April, with the exception of Russia and Kazakhstan, which will be allowed to increase production by 130 and 20 thousand barrels per day respectively, due to continued seasonal consumption patterns,” said the OPEC’s press release last week.

“The Meeting noted that since the April 2020 meeting, OPEC and non-OPEC countries had withheld 2.3bn barrels of oil by end of January 2021, accelerating the oil market rebalancing,” they added. 

The price for May Brent crude settlement was at $68.24 a barrel on Monday after reaching $71.38 a barrel on Sunday while West Texas Intermediate for April was at $65.05 a barrel.

The next meeting of the group is scheduled for April 1 to discuss output levels for May.

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