Comments at the open of the OPEC+ meeting
Comments in the public part. They’ll soon head into private deliberations
- Urges ‘caution’ and ‘vigilance’
- Uncertainty of oil-market recovery persists
- OPEC+ and Saudi cuts have accelerated rebalancing
- Oil market hasn’t fully recovered yet we are in a better place
WTI crude is at the highs of the day, up $1.20 to $62.47. The market is reading the signals about ‘caution’ and keeping powder dry as a sign that OPEC won’t flood the market.
There’s still so much uncertainty about today’s meeting but this strong market response so far indicates to me how much money is on the sidelines and waiting to pile into oil.
Update: Oil journalist Reza Zandi writes: “An informed source just said that some in the OPEC+ are concerned that Russia might ask for an increase bigger than 500 thousand bpd for April 1st, and to that end pressure others. Novak too emphasized the good conditions in the market.