Oil futures up after major producers agree to production cut
by ChemOrbis Editorial Team - content@chemorbis.com
Oil futures rose on Monday after OPEC, Russia and other producers collectively known as OPEC+ agreed to reduce output to support prices.
The production cut “recognised the commitment of the producers in the OPEC+ group to stabilise energy markets and acknowledged the importance of international cooperation in ensuring the resilience of energy systems,” OPEC said in a press release.
The participating countries will lower their overall crude oil production by 9.7 million barrels/day from May 1, 2020 for an initial period of two months concluding on June 30, OPEC said.
For the subsequent six months to end-December, the agreed cut will be 7.7 million barrels/day followed by 5.8 million barrels/day reduction for the 16 months from January 2021 to end-April 2022, the organisation added.
OIl futures gained in reaction to the development.
At 10.25 am Singapore time (02.25 am GMT) on Monday, WTI May futures were up 5.6% at $24.03/bbl while Brent June futures were up 4.7% at $32.96/bbl.
Worldwide fuel demand has fallen sharply as tight lockdowns to prevent the spread of COVID-19 have kept most people in their homes.
The production cut “recognised the commitment of the producers in the OPEC+ group to stabilise energy markets and acknowledged the importance of international cooperation in ensuring the resilience of energy systems,” OPEC said in a press release.
The participating countries will lower their overall crude oil production by 9.7 million barrels/day from May 1, 2020 for an initial period of two months concluding on June 30, OPEC said.
For the subsequent six months to end-December, the agreed cut will be 7.7 million barrels/day followed by 5.8 million barrels/day reduction for the 16 months from January 2021 to end-April 2022, the organisation added.
OIl futures gained in reaction to the development.
At 10.25 am Singapore time (02.25 am GMT) on Monday, WTI May futures were up 5.6% at $24.03/bbl while Brent June futures were up 4.7% at $32.96/bbl.
Worldwide fuel demand has fallen sharply as tight lockdowns to prevent the spread of COVID-19 have kept most people in their homes.
More free plastics news
Plastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...- March hints at further hikes in European PP, PE markets
- India’s PVC market dips to new lows on Taiwan’s March cuts, players seek signs of bottom
- Q1 turnarounds uplift Mid-East PP, PE markets in February; will it spill over to March?
- SE Asia’s indefinite PE shutdowns: A market in crisis as demand woes threaten survival
- Türkiye’s PPH markets perform better than copolymers in February
- Margin recovery priorities outweigh supply imbalances in European PVC markets
- Asian PVC demand stagnant; recovery hopes shift to end of Q1
- Tough slog in S Korea’s petchem industry spells disappointing 2024 financial results; will government's recent plan help weather the storm?
- China’s PP, PE markets face post-holiday supply surge and tepid demand
- A tug-of-war unfolds in Türkiye as PVC demand struggles against rising costs
