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Oil prices climb as OPEC+ is set to face oil challenges head on

April 9, 2020 at 1:21 pm

A Russian coin is seen with a stock market board in Moscow, Russia on 23 March 2020 [Sefa Karacan/Anadolu Agency]

Oil futures rose in electronic trade early today as investors awaited the outcome of a crucial meeting of the Organisation of the Petroleum Exporting Countries (OPEC) and its allies that is intended to end a price war between Russia and Saudi Arabia.

In a sign of the times, OPEC+ oil producers will hold a virtual meeting today to make a decision on global crude production that could make or break the oil market.

If the OPEC+ parties do not already have an agreement in place, they would have just called off the meeting, MarketWatch said. The video conference is scheduled to begin at 14:00GMT, according to Reuters.

According to a survey conducted by S&P Global Platts released this week, Saudi Arabia lifted its production to 10.15 million barrels a day in March, just above its quota of 10.144 million barrels, The kingdom, along with the UAE and Kuwait, contributed to OPEC production of 28.97 million barrels a day in March – up 980,000 barrels a day from February to reach a three-month high, the survey showed.

Iran: OPEC meetings needs clear plan

Oil importing countries may announce crude oil purchases to support demand for the fuel, International Energy Agency Executive Director Fatih Birol told Al-Arabiya TV today.

”We may hear tomorrow countries purchasing crude to build up their strategic (reserves) and support demand,” he said, cited by Al-Arabiya. “We will see a recovery of demand in line with the resolution of this problem and the return of the global economy, but I don’t expect a very quick recovery of oil prices,” he added.