The prospect for easing trade wars comes as OPEC+ adds 411,000 barrels per day of new supply as it returns the production cuts. The group will meet on May 5 to decide on whether it will again return another large tranche of the cuts in June, amid reports Saudi Arabia is willing to weather a period of low prices to punish cartel members who are consistently producing above quota.
"The marriage of convenience or even a must in 2016, which resulted in the OPEC producer alliance expanding in its effort to increase its control of the supply market seems to be heading towards a divorce. Whether it will be amicable or acrimonious is not entirely clear but the steeper-than-expected unwinding of production constraints in May and possibly in June, together with Kazakhstan's explicit reluctance to comply will lead to even more available oil in the coming months," PVM Oil Associates noted.
WDS Price at posting:
$20.61 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)