Muted holiday trading has seen some unwinding of Friday’s rallies, with Brent crude and WTI edging lower. On Friday, Brent crude rose 2.60% to USD64.65 a barrel, and WTI rose by 3.05% to USD61.65 a barrel after the impressive Non-Farm Payroll data. Both contracts have edged 20 cents lower today.
The seemingly invincible accelerating US recovery has offset OPEC+’s announcement on Thursday of a scaling back of production cuts starting in May. Notably, Saudi Arabia will also unwind all of its unilateral production cut by July. The addition of another 2 million barrels a day into international markets by OPEC+ is a calculated risk on the global recovery, maintaining momentum. Thankfully, with monthly decisions now, the group has the flexibility to temper those proposals if things don’t go to plan. With the recent news there is a chance the lows could be retested. If the lows are broken we could see a retest of 52.
The seemingly invincible accelerating US recovery has offset OPEC+’s announcement on Thursday of a scaling back of production cuts starting in May. Notably, Saudi Arabia will also unwind all of its unilateral production cut by July. The addition of another 2 million barrels a day into international markets by OPEC+ is a calculated risk on the global recovery, maintaining momentum. Thankfully, with monthly decisions now, the group has the flexibility to temper those proposals if things don’t go to plan. With the recent news there is a chance the lows could be retested. If the lows are broken we could see a retest of 52.