Oil rises sharply after OPEC+ meeting

After the completion of the OPEC+ ministerial meeting, Brent quotes rose to $71.30 per barrel. The last time such price values ​​were recorded in May 2019.

The OPEC+ ministers held the shortest meeting in history and within 15-20 minutes adopted the recommendations of the OPEC+ ministerial monitoring committee to maintain the planned plans to increase oil production in July. Production levels after July were not discussed. According to the deal signed a year ago, after July, the alliance plans to keep the production level unchanged until April 2022.

The OPEC+ Technical Committee, whose meeting took place the day before, came to the conclusion that a surplus in the oil market should not be expected even if the forecast for demand for the current year is reduced.

Thus, the decision was again made to gradually restore oil production: in May, the countries participating in the agreement can increase production by 350 thousand barrels per day, in June – by the same amount, in July – by 441 thousand barrels per day. In addition, Saudi Arabia lifted its voluntary restrictions: 250 thousand b/d in May, 350 thousand b/d in June and 400 thousand b/d in July.

In addition, market participants continue to monitor the progress of negotiations on the Iranian nuclear deal. Tehran said it hopes for a full restoration of the agreements before the expiration of the current government's term in August.