Oil boosts ahead of OPEC+ meeting
Crude oil prices increased on April 1, recouping some of the previous session’s losses. The rally came as hopes boosted that OPEC and its allies later on Thursday would decide to keep curtailing production in place in the face of resurgent coronavirus cases in some regions.
Brent crude for June delivery increased by 1.1%, which equals 71 cents, and settled at $63.45 after declining 2.2% overnight. Meanwhile, U.S. oil surged 71 cents (or 1.2%) and hit $59.87 a barrel after dipping 2.3% in the previous session.
Ministers from OPEC and its allies, including Russia and Kazakhstan (OPEC+), meet later on April 1 to consider options that include an output rollover and a gradual output raise.
A lowering of the OPEC+ oil demand growth outlook for 2021 by 300,000 barrels per day (BPD) also reduced prices and made it more likely the meeting would result in continued restraint.
On March 31, the Joint Technical Committee, which advises the group of oil-producing nations that includes Saudi Arabia and Russia, had not made any formal recommendation.
U.S. crude production dropped in January, helping to support prices
OPEC+ is currently curbing output by more than 7 million BPD in order to support prices and lessen oversupply. Moreover, Saudi Arabia has added to those cuts with an additional 1 million BPD.
The cuts came after the novel COVID-19 outbreak turned into the most significant global health crisis in a century and led to the evisceration of demand for oil and fuel.
Recovery has been stopped as outbreak after outbreak of COVID-19 infections leads to more lockdown measures.
France President Emmanuel Macron put his country into a third lockdown on April 31. He said schools would close for three weeks to cope with the third wave of coronavirus infections.
According to official figures, U.S. crude production dropped in January, helping to support prices. U.S. output declined to 11.08 million BPD last month, down from a revised 11.101 million BPD in December.
Chinese steel rebar and hot-rolled coil futures increased today
Chinese steel rebar and hot-rolled coil futures surged on March 31, boosted by expectations of further demand on upbeat economic indicators and Beijing’s efforts to stimulate consumption.
According to a state media reportChina’s excavator sales in the first two months of 2021 surged 149% from the same period a year earlier, suggesting a buoyant infrastructure sector.
Furthermore, the industry ministry and other departments issued a notice promoting new energy vehicle sales in smaller cities and rural areas.
According to consultancy SteelHome, Spot 62% iron ore for delivery to China was intact at $166 a tonne on Wednesday from the prior session.
