Skip to content Skip to sidebar Skip to footer

Oil Prices Rise To Hit Highest Level in 13 Months

Oil prices rose for a fourth straight session on Thursday to the highest levels in more than 13 months. The rise was stimulated by monetary easing policies and lower crude production in the United States.

Brent crude futures for April gained 19 cents, 0.3%, to $67.23 a barrel by 0400 GMT, while U.S. West Texas Intermediate (WTI) crude for April was at $63.30 a barrel, up 8 cents, 0.1%.

Both contracts touched their highest since January 2020 earlier in the session, with Brent at $67.44 and WTI at $63.67.
Oil Prices
This comes despite the rare winter storm in Texas that has caused U.S. crude production to drop by more than 10%, or 1 million barrels per day (BPD), last week.
OPEC+ Considers increased oil Production

OPEC+ is set to meet on March 4, where it will discuss raising output to as much as half a million barrels per day starting in April, the sources said.

OPEC+ members are currently suppressing oil production by more than 7 million barrels per day, but with oil prices now on the rise and the markets getting the idea that the market could be tightening, OPEC+ may consider loosening the reins.

In January, Saudi Arabia announced that it would voluntarily cut an additional 1 million BPD from its quota in February and March.

However, Saudi Arabia has not committed to cutting this additional million barrels beyond March, so it’s possible that this OPEC+ meeting will end with an additional 1.5 million barrels added into the mix: an additional 500,000 BPD added to the production quotas and an additional million BPD from Saudi Arabia.

Read also; Oil Prices Slip Amidst Surprise Inventory in US Crude Stocks

.