Oil times rose on Monday, ahead of a decision this week by the Organization of the Petroleum Exporting Countries and its allies that is expected to see production curves.
The U.S. House on Saturday passed a $ 1.9 trillion package of Biden administration of COVID-19 relief spending. He will now move to the Senate, where he can be paired as Democrats work to push him through a room divided by 50-50, with Vice President Kamala Harris serve as the unbroken vote.
West Texas Raw Intermediate for delivery in April CL.1,
CLJ21,
rose 74 cents, or 1.2%, to $ 62.24 a barrel on the New York Mercantile Exchange. May Brent crude BRN00,
BRNK21,
the global benchmark, jumped 82 cents, or 1.3%, to $ 65.24 a barrel on ICE Futures Europe.
Oil has accumulated so far this year, fueled by expectations for the release of COVID-19 vaccines and fiscal stimulus to build strong demand, while efforts by OPEC and its allies, an organization called OPEC +, are Holding production has helped keep the market in balance, analysts said, a move developed by Saudi Arabia ‘s decision to cut an additional 1 million barrels per day in February and beyond. March.
“Clearly, with the strength we have seen in the market there will be increasing pressure from within the organization to reduce cuts. While the market expects the group to increase output from April, the unknown is huge with the rate, ”Warren Patteson, head of product strategy at ING, said in a note.
“It is very likely that Saudi Arabia will return the 1 million barrels per day of supply that it voluntarily cuts over in February and March, and then for group cuts, under which the agreement can discount with 500,000 barrels per month, ”he said. “But as the organization has not made a discount anywhere near the first quarter of this year, some members may be asking for more than 500,000 barrels per day of discount in April.”