Oil Prices Closed Higher After OPEC Decision

The price of intermediate oil of Texas (WTI) closed this Thursday with a rise of 3.9%, to 61.45 dollars, following the decision of the OPEC + alliance to pump two million barrels per day (mbd) of additional crude from of May.

At the end of trading on the New York Mercantile Exchange (Nymex), WTI futures contracts for delivery in May were down $ 2.29 from the close of the previous day.

For its part, the price of a barrel of Brent oil for delivery in June ended this Thursday in the London futures market at 64.84 dollars, 3.35% more than at the end of the previous session.

North Sea crude, a benchmark in Europe, ended the day on the International Exchange Futures with an increase of 2.10 dollars compared to the last negotiation, when the barrel for June closed at 62.74 dollars.

The ambitious economic plan of the United States and the expectations of recovery after the pandemic boosted the price of crude oil today, despite the unexpected decision of the Organization of the Petroleum Exporting Countries (OPEC) and its allies to start gradually increasing its production.

The group of 23 countries agreed last year to cut their supply by about 9.7 mbd due to the coronavirus crisis, and has been relaxing that limit to 7.2 mbd in January, to which Saudi Arabia added 1 million in the months of February and March.

The result of today’s negotiations was not what was expected, because on the eve of today’s telematic meeting, most of the ministers were reluctant to turn on the taps due to the uncertainty that the coronavirus pandemic still generates.

The decision “seems risky” due to doubts about the recovery in demand, but shows a “clear path until the end of July, and today’s agreement removes the uncertainty of the month-to-month production calibrations established since December,” said the analyst Manish Rah, from Velandera Energy.

Gasoline contracts due in May, the new reference month, totaled 6 cents to $ 2.02 a gallon, and natural gas contracts for same-month delivery rose 3 cents to $ 2.64 per thousand cubic feet.

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