Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Oil Dips on Talk of OPEC Going Ahead With More Output Despite India Situation

CommoditiesApr 26, 2021 05:09PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Barani Krishnan

Investing.com - Oil prices dipped Monday on talk that the OPEC+ cartel at its meeting this week will push ahead with plans to produce more despite India’s COVID rampage that will likely hit demand from the world’s third largest crude importer.

India reported a record number of coronavirus cases for the fifth day in a row, with five million infections in April alone and total caseloads reaching above 17 million — more than half of America’s. Hospitals in the nation of 1.4 billion were running out of oxygen and ICU beds and patients are being left outside, waiting for care.

A joint-technical committee of OPEC+, meeting ahead of the more important ministerial conference of the cartel on Wednesday, acknowledged that India's COVID surge may derail oil demand recovery, Reuters said.

But another report by oil markets service Platts said that OPEC+ ministers, who will meet virtually in the next two days, were likely to go ahead with a planned production hike of nearly 800,000 barrels in May.

“Concerns with crude demand from India and Japan have kept oil prices from participating with the broader rally in commodities,” said Ed Moya, head of U.S. research at New York-based online trading platform OANDA.

Japan, the fourth largest oil importer after India, reported a state of emergency over COVID, with just 88 days to go before the Tokyo Olympics.

New York-traded West Texas Intermediate, the benchmark for U.S. crude, settled at $61.91 a barrel, down 23 cents, or 0.4%. It fell to a session low of $60.66 prior to that.

“WTI crude should consolidate between $60-65 until the OPEC + ministerial meeting in the middle of the week,” Moya said. 

London-traded Brent, the global benchmark for crude, dipped 15 cents, or 0.2%, at $65.03. Brent’s session low was $63.94.

The 23-member OPEC+ comprises the original 13 members of OPEC, or the Saudi-led Organization of the Petroleum Exporting Countries, and 10 other oil producing nations steered by Russia. The group announced early this month its first meaningful production hike in a year, after withholding at least seven million barrels per day in output since April 2020.

In its April 1 announcement, OPEC+ said it will pump an additional 350,000 barrels per day in May and June, and a further 400,000 barrels daily in July.

Oil prices fell to historic negative pricing of minus $40 per barrel in April 2020 at the height of the demand destruction caused by the Covid-19 pandemic. Production cuts since then by OPEC+ has brought the market back, with the rebound accelerating after vaccine breakthroughs for the virus in November.

The joint technical committee of OPEC+ that met on Monday expects the oil glut built at the height of the pandemic to be almost gone by the end of the second quarter, according to Reuters reports.

The committee saw oil supplies declining by 1.2 million barrels a day in 2021 and demand rising by 6 million, the reports said.

Oil Dips on Talk of OPEC Going Ahead With More Output Despite India Situation
 

Related Articles

Oil Down Over Soaring Dollar, But Remains Above $70
Oil Down Over Soaring Dollar, But Remains Above $70 By Investing.com - Jun 18, 2021

By Gina Lee Investing.com – Oil was down Friday morning in Asia but remained above $70-market after the U.S. Federal Reserve projected possible interest rate hikes earlier than...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email