OPEC+ Meeting Tomorrow: Oil producers unlikely to change output policy on April 3 after crude hits 2024-high
Brent crude reached $89 per barrel on Tuesday, up from $77 at the end of 2023. Analysts expect a straightforward meeting, supporting the earlier decision to extend output cuts. The meeting is scheduled for 1 p.m.
Vienna time. Also Read: Oil hits six-month high on tighter supply over Ukraine attack ahead of OPEC decision; Brent at $89/bbl Mohammed Imran, Research Analyst at leading domestic brokerage ShareKhan Commodities by BNP Paribas toldLiveMint in an exclusive interview last month that he experts Brent crude to average between $87-$92 per barrel for 2024 as the expected June rate cuts from US Fed will boost the growth sentiment. On the policy stance by OPEC+ tomorrow, Imran said, ‘’We think OPEC+ will maintain the status quo as they have extended voluntary cuts till June 2024, and Brent prices have since then stabilised above $80, which has given a cushion for OPEC+ kingpin Saudi and Russia to keep the policy unchanged.'' OPEC has forecasted an improved global demand for crude oil in FY25.
Some sign of improvement is also seen in China's economy. ‘’In the near term, escalating geopolitical tension and production cuts may increase the prices of crude oil but the higher interest rates may increase the demand concern which may keep the upside limited in crude oil prices for FY25,'' said Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart Ltd. OPEC+ members, led by Saudi Arabia and Russia, last month agreed to extend voluntary output cuts of 2.2 million barrels per day (bpd) to support the market.
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