Oil Extends Growth for Third Consecutive Month

On Friday, oil prices surged, extending their upward trajectory for the third consecutive month, as investors eagerly awaited OPEC+’s decision next week regarding its production policy, alongside concerns over increased US inventories.

Brent crude saw a notable increase of 69 cents, reaching $86.92 per barrel from its opening price of $86.32 per barrel earlier in the day. Similarly, West Texas Intermediate (WTI) crude rose by 1.74% to $83.11 per barrel, up from $81.68 per barrel.

According to sources familiar with the matter who spoke to Reuters last Tuesday, it appears unlikely that the Organization of the Petroleum Exporting Countries (OPEC) will alter its production policy until a ministerial-level meeting involving all member state delegates convenes in June.

These sources also indicated that OPEC is not expected to issue any recommendations regarding production policy at this week’s meeting. Historically, OPEC has relied primarily on reducing production levels as a key strategy to bolster global oil prices.

Despite a decline in both types of oil futures contracts following the increase in US inventories reported last Wednesday, crude oil prices managed to rebound on positive news surrounding potential demand growth in the United States. This optimism, stemming from the world’s largest economy, has served as a significant support factor for oil during recent trading sessions.

Data from the Energy Information Administration revealed that US crude oil inventories surged by approximately 3.165 million barrels in the week ending March 22, surpassing expectations that had been set at 1.275 million barrels.