More OPEC headlines
Russia and Kazakhstan will be allowed to modestly increase oil output in April, according to a report. Further reports also say that existing quotas will be rolled over.
One report says Saudis will keep their voluntary 1mbpd cut through April. That was not the baseline at all but it’s still murky.
Assuming this really is a small increase and everything comes to fruition, it will be all about the voluntary cut from here.
Update: A report says Saudi Arabia will gradually start bringing back its voluntary cut in May. How gradually is obviously the question, but the baseline heading into this meeting was that they would bring it all back in April, so this is undoubtedly bullish.
Update 2: OPEC will meet again on April 7 to decide what to do for May. There had been some talk of a two-month rollover so this adds a bit of uncertainty. I highlighted earlier that it’s a good idea for OPEC to keep other producers guessing because if they commit for longer timeframes, it might incentivize other producers to invest in new production. The ever-looming threat that OPEC could come in with the production hammer will keep them cautious.