Mid-Week Review – April 7, 2021
Oil prices rise on stronger economic outlook, US stockpile draw
Oil prices edged higher on Wednesday on the prospects for stronger global economic growth amid increased COVID-19 vaccinations and a report that crude inventories in the United States, the world’s biggest fuel consumer, fell. But optimism over talks between the United States and Iran and an impending increase in supply by major oil producers capped gains. Click Here to read more from Fox Business.
Oil price susceptible to rise in US output following OPEC JMMC meeting
The price of oil appears to be stuck in a narrow range as the Organization of the Petroleum Exporting Countries (OPEC) plan to gradually restore production over the coming months, but the broader outlook warns of a larger correction in crude as it snaps the upward trend carried over from last year. The price of oil attempts to push back above the 50-Day SMA ($59.88) after trading below the moving average for the first time since November, and crude may continue to consolidate following the OPEC Joint Ministerial Monitoring Committee (JMMC) meeting as the update to the production adjustments table reveals plans to slowly unwind the production cuts in response to COVID-19. Click Here to read more from Daily FX.
Exxon set to outperform as oil and gas prices climb
Exxon could swing into profit this quarter after five consecutive quarters in the red thanks to higher oil and gas prices and recovering demand, according to a regulatory filing with the Securities and Exchange Commission. The filing also suggested that Exxon did not expect too great an impact on its first-quarter performance from the Texas Freeze in February, which led to oilfield shutdowns. Click Here to read more from Oil Price.
OPEC and allies to boost production after US calls Saudi Arabia
The Organization of the Petroleum Exporting Countries and allied producers have agreed to gradually increase their output over the next three months. The move follows a sharp increase in oil prices, and a call from the United States to keep energy affordable. The OPEC+ alliance of crude producers has been holding back roughly 8 million barrels per day from global markets. That includes an extra production cut of 1 million barrels per day from Saudi Arabia that comes on top of its commitment to other producers. Click Here to read more from CNN.
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