What do OPEC+ and “Guardians of the Galaxy” have in common?
OPEC+ is due to meet on 4 March to decide on their collective output levels for April.
However, in the lead up to this crucial meeting, Saudi Arabia and Russia appear to be at odds once more about how much of their oil should be pumped out into a world that’s still recovering from the pandemic.
The alliance’s decision is set to have a major impact on global oil prices, which have already surged by 30% so far this year!
Tune in as Han Tan and his guest, senior market analyst Lukman Otunuga outline what to expect from this looming event, while drawing parallels from a certain hit movie franchise.
The upcoming OPEC+ supply decision, specifically as it pertains to Saudi Arabia’s 1 million bpd in additional cuts, will be crucial in determining how oil benchmarks perform over the near term. It remains to be seen where the balance of power will tilt at next week’s meeting, considering the competing interests within the alliance - be it to support prices or ease up on supply cuts.
Should OPEC+ decide to restore more of its supplies into global markets in April, that is likely to cap the upside for oil benchmarks, barring any positive surprises in demand-side factors. Still, the 2021 outlook remains robust, enabled by the global demand recovery that’ll be further enabled by the continued easing of lockdown measures, expectations for more fiscal stimulus, and the rollout of the Covid-19 vaccine worldwide.
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