Oil Price Surges before OPEC+ Meeting, Expecting to Agree in Output Cut

Oil price surged on Thursday before OPEC+ meeting later in a day, expecting the world’s largest oil producers would come to an agreement to cut oil output as the covid-19 threatens global oil demand.

As of 16:44 local time in Thailand, the price of WTI was at $26.53/bbl, rose $1.44/bbl or 5.74%. Meanwhile, Brent was traded at $34.08/bbl, climbed $1.24/bbl or 3.78%.

The Organization of the Petroleum Exporting Countries (OPEC) and the producing nation allies including Russia or also known as OPEC+ are set to discuss via video conference meeting on Thursday.

After an unsuccessful discussion in early March of trim down an oil production which leading to a price war between Saudi Arabia and Russia, therefore this Thursday meeting, oil markets across the world are expecting those petroleum manufacturer would finally agree to cut an output.

Hopes of an agreement to cut between 10 million and 15 million barrels per day appeared after media reports suggested Russia was ready to reduce its output by 1.6 million bpd and Algeria’s energy minister said he expected a “fruitful” meeting. With an aforementioned amount of reduction, it would be far bigger than any supply cut OPEC has ever agreed on before.