{"id":190476,"date":"2021-02-27T20:38:00","date_gmt":"2021-02-27T17:38:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/heres-what-the-oil-market-thinks-opec-should-do-next\/"},"modified":"2021-02-27T20:38:00","modified_gmt":"2021-02-27T17:38:00","slug":"heres-what-the-oil-market-thinks-opec-should-do-next","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/heres-what-the-oil-market-thinks-opec-should-do-next\/","title":{"rendered":"#\n  Here\u2019s what the oil market thinks OPEC+ should do next"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a37a5d6b265d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a37a5d6b265d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-what-the-oil-market-thinks-opec-should-do-next\/#OPEC_meet_next_week_to_discuss_production_levels\" >OPEC+ meet next week to discuss production levels<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-what-the-oil-market-thinks-opec-should-do-next\/#Myra_P_Saefong\" >Myra P. Saefong<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Here\u2019s what the oil market thinks OPEC+ should do next<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"OPEC_meet_next_week_to_discuss_production_levels\"><\/span>\n  OPEC+ meet next week to discuss production levels<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000181063\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Major oil producers will put their negotiation skills to the test when they meet to discuss production levels in early March. <\/p>\n<p> The gathering comes as Saudi Arabia and Russia, two of the world\u2019s largest producers, attempt to balance rising crude prices, tightening global supplies and an uncertain path of recovery for energy demand.<\/p>\n<div class=\"paywall\">\n       Strength in oil prices may encourage producers to consider lifting output. The biggest incentive for the Organization of the Petroleum Exporting Countries and their Russia-led allies, collectively known as OPEC+, to raise production will be the need to \u201ctake advantage of the high-priced oil,\u201d says Stan Bharti, founder of merchant bank Forbes &amp; Manhattan.<\/p>\n<p>The pandemic has impacted these countries greatly due to decreased demand and if oil goes higher, \u201cthese oil-rich economies will need to cash out,\u201d he says.<\/p>\n<p>Prices have already reached their highest levels since January 2020, with U.S. benchmark West Texas Inter<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>te crude<br \/>\n        CLJ21,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209724545\/delayed\" class=\"negative\">-2.94%<\/bg-quote><\/p>\n<p>        CL.1,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/211629951\/delayed\" class=\"negative\">-2.94%<\/bg-quote><br \/>\n       at $63.22 a barrel and global benchmark Brent<br \/>\n        BRNK21,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209705302\/delayed\" class=\"positive\">+0.33%<\/bg-quote><\/p>\n<p>        BRN00,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209704782\/delayed\" class=\"positive\">+0.33%<\/bg-quote><br \/>\n       at $67.04 on Feb. 24. WTI crude is up 30% this year, marking an impressive rebound from April 20, when it\u00a0famously dropped\u00a0to negative $37.63.<\/p>\n<p>In early January, Saudi Arabia\u00a0agreed to unilaterally cut its output\u00a0by 1 million barrels a day in February and March in a move that would offset higher production from some allies, particularly Russia.<\/p>\n<p>At the time, OPEC+ also confirmed that it would ease production curbs to 7.2 million barrels a day from 7.7 million, and reassess output levels monthly, allowing for adjustments of up to 500,000 barrels a day in either direction.<\/p>\n<p>The best decision for OPEC+, which will hold a committee meeting a day ahead of the key March 4 gathering, would be to \u201cstay neutral,\u201d says Bharti. \u201cDuring these times, OPEC+ nations won\u2019t want to rock the boat,\u201d he says, adding that prices are better \u201cthan they otherwise would be during a global pandemic.\u201d<\/p>\n<p>As COVID cases decline, transportation demand for oil will increase, and he expects oil prices to go even higher, to $80 to $100 a barrel in the next six months. \u201cDemand is building and we\u2019ll see a surge in prices.\u201d<\/p>\n<p>There has been speculation in recent weeks, however, that OPEC+ will decide to further curb production cuts, raising output to take advantage of high oil prices.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Supply growth from OPEC+ may mute any commodity price <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>reciation that comes with a return of demand, says Chris Duncan, director of investments at Brandes Investment Partners.<\/p>\n<p>Then again, if the group maintains production cuts for an extended period and that results in a\u00a0strong price increase, U.S. production is likely to grow, he says. So OPEC+ would put higher prices at risk if they decide to lift output, but could lose market share if it continues to curb output.<\/p>\n<p>\u201cTraders should keep a close eye on a slow-developing rift between Saudi Arabia and Russia\u201d as the meeting nears, says Phillip Streible, chief market strategist at Blue Line Futures. With Brent prices \u201csteadfastly above $60, Russia is arguing it\u2019s time to bring previously cut production back.\u201d<\/p>\n<p>If that happens, prices could be hit by headwinds in the second half of the year, leaving year-end targets at $65 for WTI and $70 for Brent, he says. Maintaining current output cuts, along with a rise in <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">travel<\/a> and oil demand as Covid cases decline, could lift WTI to $70 and Brent to $75 by midsummer.<\/p>\n<p>There are still \u201coutside variables,\u201d to contend with, Streible warns, such as increasing tensions with Iran, or a resurgence in Covid through another variant of the virus, which could derail the oil-price recovery.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Myra P. Saefong\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Myra_P_Saefong\"><\/span>Myra P. Saefong<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D2C3470F062D%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Here\u2019s what the oil market thinks OPEC+ should do next &#8221; OPEC+ meet next week to discuss production levels Major oil producers will put their negotiation skills to the test when they meet to discuss production levels in early March. The gathering comes as Saudi Arabia and Russia, two of the world\u2019s largest producers,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":190477,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-190476","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/190476","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=190476"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/190476\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/190477"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=190476"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=190476"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=190476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}