Oil Prices Soar Ahead of OPEC+ Conference in Vienna – Details

  • OPEC+ to reduce oil output by 1M barrels per day.
  • Monday morning sessions saw oil prices surging 4%.
  • Goldman Sachs experts anticipate oil price to rise to $100 per bbl.

Oil producers’ influential alliance OPEC+ will likely announce its most substantial oil output cut for nearly two years. Energy experts say the move would see fuel prices hitting triple digits. The group encompassing non-OPEC and OPEC oil producers will meet in Vienna, Austria, this week.

They will discuss the upcoming move on oil production policy. Moreover, it will represent the first cartel meeting since COVID-19 erupted.

OPEC to Reduce Output to 1M Barrels

Brian Sullivan of CNBC told Squawk Box that OPEC had held virtual meetings since the COVID-19 pandemic started. He added that the scheduled physical conference in Vienna was unanticipated. Sullivan confirmed possible substantial cuts. And that might mean 500K barrels/day or up to 1.5M barrels daily.

Meanwhile, an OPEC+ insider revealed that the group plans a more than 1M barrels/day oil output cut. Pickering Energy Partners chief information officer Dan Pickering stated that OPEC ministers would converge in Austria for the first time in over two years, predicting historic output cuts.

Stephen Brennock of PVM Oil Associates said that oil prices exhibited upside strength on Monday following massive losses last month.

Oil Prices to Soar to $100/barrel

Brennock stated that increased trading activity plus tightening short-term oil fundamentals might propel oil prices to $100/barrel. Though individuals with bullish projections have suffered, expectations and hope seem impending.

Analysts at Goldman Sachs supported the $100/bbl narrative, expecting Brent to explore triple digits in the coming 90 days before soaring to $105 in the coming six months. Meanwhile, the United States investment bank projects a WTI surge to $95 by 2022 end before surging to $100 in the coming six months.

Pickering suggested that OPEC+ oil prices will unlikely remain at $50 – $60 per barrel. Nevertheless, he confirmed the cartel remained unbothered about demand, and prices might be higher.

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