Oil rises as traders expect OPEC+ to hold output cuts

By Stephanie Kelly NEW YORK (Reuters) - Oil prices edged higher on Monday after Reuters reported that Russia would support stable oil output from OPEC+ ahead of a meeting with the producer group later this week. Futures had fallen earlier in the session on news that a container ship in the Suez Canal blocking traffic for nearly a week had been refloated. Brent oil rose 26 cents to $64.83 a barrel by 1:08 p.m.

Reuters March 30, 2021 00:06:54 IST
Oil rises as traders expect OPEC+ to hold output cuts

Oil rises as traders expect OPEC to hold output cuts

By Stephanie Kelly

NEW YORK (Reuters) - Oil prices edged higher on Monday after Reuters reported that Russia would support stable oil output from OPEC+ ahead of a meeting with the producer group later this week.

Futures had fallen earlier in the session on news that a container ship in the Suez Canal blocking traffic for nearly a week had been refloated.

Brent oil rose 26 cents to $64.83 a barrel by 1:08 p.m. EDT (1708 GMT). U.S. crude rose 47 cents to $61.44 a barrel.

Russia will support broadly stable oil output by the Organization of the Petroleum Exporting Countries and allies including Russia (OPEC+) in May, while seeking a relatively small output hike for itself to meet the rising seasonal demand, according to a source familiar with Russia's thinking.

Sources told Reuters last week that they expect a decision similar to the last meeting when OPEC+ meets on April 1 to decide output policy.

Russian oil and gas condensate output increased to 10.22 million barrels per day (bpd) in the period March 1-28 from 10.1 million bpd in February, two industry sources familiar with the data told Reuters, broadly in line with Moscow's plans.

At the Suez Canal, live footage on a local television station showed the ship Ever Given surrounded by tug boats moving slowly in the centre of the canal on Monday. The station, ExtraNews, said the ship was moving at a speed of 1.5 knots.

However, disruptions in the global shipping industry could take weeks and possibly months to clear, top container shipping lines said.

"The market will soon realize that despite the positive news, even if Ever Given leaves the Canal within days, some leftover downstream ripple effects should be expected in the meantime," said Louise Dickson, oil markets analyst.

Limiting price gains, some European countries struggling with increased COVID-19 infections have tightened lockdown restrictions, and fuel demand across the continent remains weak. England's stay-at-home lockdown order, though, ended on Monday.

(Reporting by Stephanie Kelly in New York; additional reporting by Bozorgmehr Sharafedin in London and Aaron Sheldrick in Tokyo, Editing by Marguerita Choy and Gareth Jones)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

How Biden's agencies are picking apart Trump's Wall Street-friendly measures
Business

How Biden's agencies are picking apart Trump's Wall Street-friendly measures

(In first paragraph, fixes hyperlink to story) By Katanga Johnson WASHINGTON (Reuters) -U.S.

GM marketing spend will return to normal levels post pandemic
Business

GM marketing spend will return to normal levels post pandemic

By Ben Klayman DETROIT (Reuters) - General Motors Co's marketing and promotional spending will return to normal levels after the COVID-19 pandemic caused that budget to drop last year, the U.S. automaker's top marketing officer said on Monday. "What we went through in the pandemic was certainly severe and we should be moving back up to our normalized levels," GM Chief Marketing Officer Deborah Wahl said in an online appearance at a Reuters Events conference.

White House to zero in on chip shortage in meeting with company officials
Business

White House to zero in on chip shortage in meeting with company officials

By Nandita Bose WASHINGTON (Reuters) - U.S. President Joe Biden will urge Congress to invest $50 billion in semiconductor manufacturing and research when he meets with top executives from nearly 20 major companies on Monday about the global chips shortage that has roiled the automotive industry and technology firms. The push is part of his broader focus on rebuilding U.S