Connect with us

Hi, what are you looking for?


Crude Oil Climbs: WTI $82, Brent $86, OPEC+ Extends Cuts

crude oil

Crude Oil Climbs: WTI $82, Brent $86, OPEC+ Extends Cuts

Quick Look:

  • West Texas Intermediate (WTI) futures climbed near $82 a barrel, with Brent crude surpassing $86.
  • OPEC+ extends the 2 million barrels a day cut to the end of June, indicating a likely shrink in global stockpiles.
  • Geopolitical tensions, demand growth in Asia, and the potential for higher prices buoyed crude oil’s revival.

West Texas Intermediate futures have ascended to near $82 a barrel following a modest dip over two days, while Brent crude has soared above $86. This year alone, the US crude oil benchmark has surged by 14%, transitioning from a bearish contango to a bullish backwardated structure. Such momentum is attributable to OPEC+’s strategic cuts of 2 million barrels a day, now extended until the end of June, underpinning the shrinkage of global stockpiles.

Moreover, geopolitical tensions in the Middle East have further invigorated the market. The backdrop of these events, coupled with demand spikes in Asian powerhouses like India, sets the stage for a tightly contested market. Nonetheless, the recent uptick in US crude and gasoline stockpiles suggests a softening in market tightness, offset by continuous non-OPEC+ oil supply expansion.

Navigating Supply and Demand Dynamics

OPEC+’s commitment to its production quotas signals a strategic manoeuvre to sustain market equilibrium ahead of its impending review meeting. Despite burgeoning supply pressures, the efficacy of these quotas remains undisputed among delegates, with no immediate changes on the horizon. The delicate balance of supply and demand has also been influenced by Asia’s burgeoning oil imports, poised to hit a 10-month high, primarily driven by China and India’s increased procurement from Russia.

However, the sustainability of such import levels remains uncertain amid looming maintenance schedules and escalating prices. This precarious balance underscores the critical role of OPEC+ cuts in steering market dynamics, juxtaposed against a backdrop of geopolitical uncertainties and varying demand forecasts.

Bullish Crude Oil: US and China Demand Vs. Supply Cuts

The current bullish sentiment in the oil market is driven by strong demand from the US and China. This situation presents a complex outlook. Additionally, investment strategists, such as Han Zhong Liang from Standard Chartered Plc, are optimistic about China’s economic future. This optimism is even greater due to OPEC+’s strategic supply cuts.

Furthermore, Brent crude has surpassed the $80 mark since early February. Consequently, there’s a growing narrative that prices could rise even further. This increase might even lead to Brent reaching triple digits by September.

This speculative forecast depends on several factors. It relies on the interplay between Russia’s production cuts and counter-measures effectiveness to balance the market. As the top oil-importing region prepares for higher arrival rates, a critical question emerges. Will the market be able to maintain its momentum?

The oil market’s journey this quarter tells a story of strategic supply cuts, geopolitical unrest, and strong demand. This story paints a complex picture of the future. As we navigate these challenging conditions, the interaction of these factors will undoubtedly influence the market’s direction. It will present both challenges and opportunities for the global economy.

The post Crude Oil Climbs: WTI $82, Brent $86, OPEC+ Extends Cuts appeared first on FinanceBrokerage.

You May Also Like


Newmont (NYSE: NEM) reported mixed financial results even as the price of gold approached its all-time high. In all, the company’s earnings per share...


Fisker (NYSE: FSR) stock price has been one of the best-performing electric vehicle (EV) stocks this week even as Tesla slumped. The shares jumped...


The Fox Corporation (NASDAQ: FOX) stock price has been under pressure as investors come to terms with the abrupt firing of Tucker Carlson. The...


NatWest (LON: NWG) share price rose sharply, helped by the strong results from Barclays. The stock jumped to a high of 274.8p, which was...

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the-company.

Copyright © 2024