The oil market continues to recover. From the opening of the day of the quotation of oil, the WTI brand is added more than 1% and are quoted at $ 54. The last time in this area was in February 2020.
Support prices provided reports that OPEC countries + in December practically fulfilled an agreement to reduce oil production by 100%. The Reuters Agency survey showed that OPEC countries mined 25.75 million barrels day, which is 160 thousand barrels per day more than in December. By agreement of OPEC +, which entered into force on January 1, the total mining should have been increased by 500 thousand barrels per day. Thus, the actual increase was significantly less than planned. A less significant increase in the proposal was the result of not only the voluntary restraint of the members of the oil alliance, but also forced suspensions of production in Nigeria.
It is worth noting that in February, the global offer of oil can suit even stronger. Recall that from February 1, Saudi Arabia will produce 1 million barrels per day less. The decision was made unilaterally and is intended to stabilize demand and supply in conditions of weak global economic activity. Previously, another participant in OPEC + - Iraq, Iraq also announced plans to reduce the volume of oil production to 3.6 million barrels per day, thereby compensating over production in past periods, which became a violation of the conditions of the energy package.
This week market participants will follow the results of the meeting of the OPEC Technical Committee +, which will be held on Wednesday. As expected, the Committee will not recommend a change in the amount of production. The ministerial meeting will be held later on March 4. The mood of traders in the coming days may also affect the change in oil reserves in the United States. In the event that the report reports the next reduction in stocks, WTI's oil brand can be gained above $ 55 per barrel. Given the said, "long" positions remain in priority.
Artem Deev, Head of Analytical Department Amarkets
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