For Traders

Analytical Reviews

28.04.202110:52 Forex Analysis & Reviews: Oil soars due to positive projections from OPEC

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

OPEC revised its forecast for oil demand this year. According to the coalition, world consumption will rise by 6 million barrels per day, which will make almost all surplus to disappear by the end of this quarter.

In line with this, OPEC decided to ease the production cuts and add 2 million bpd on the total output for the next three months.

Now, producers are cautiously resuming shipments, adding approximately 600,000 bpd this May.

This news raised oil prices to $ 66.

The group also projected that oil reserves will decline by an average of 1.2 million barrels per day. This is larger than the 800,000-a-day decrease they predicted a month ago.

And by the end of this quarter, surplus in developed countries is expected to drop to 8 million barrels.

But in the case that consumption deteriorates, OPEC can act quickly since they meet regularly, about once a month. In fact, their next meeting is already scheduled on June 1.

An example of an event that could ultimately increase supply is the negotiations in Vienna, which was set to revive the 2015 nuclear deal with Iran.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.