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  • Oil & Gas - News
  • Updated: April 27, 2023

Oil Prices Soar As Russia's Novak Says No More OPEC+ Cuts

Oil Prices Soar As Russia's Novak Says No More OPEC+ Cuts

Crude oil prices edged up a little bit on Thursday in response to Wednesday's decline brought on by perceptions that the OPEC+ late March production reduction announcement had already been priced in for the following month, when they will take effect.

Brent crude was trading at $78.53 as of 1:41 p.m. Eastern Time on Thursday, up 1.08% for an 84-cent gain for the day but still still below the $80 resistance level.

With a 1.09% increase and an 81-cent gain for the day, West Texas Intermediate (WTI) was trading at $75.11 a barrel.

In spite of an unexpectedly big reduction in U.S. crude inventory stocks, oil prices fell by about 4% on Wednesday as investors' concerns over weak U.S. economic data dominated the market.

The modest increase comes after Russian Deputy Prime Minister Alexander Novak said on Thursday that the oil markets were in equilibrium.

According to Novak, more OPEC+ cutbacks are unlikely to be necessary given the balance's current status.

Novak stated that OPEC+ does not feel the need to increase output curbs at this time, despite lower-than-expected Chinese demand.

Additionally, Novak said that Russia has lowered its output by 500,000 barrels per day, or 5% of total output, as planned for the month of April.

These reductions will be in effect until the year's conclusion.

The little increase in pricing indicates ongoing market trepidation on the state of the US economy.

New data issued on Thursday revealed that the US GDP increased by 1.1% for the three months ending in March.

The growth rate has slowed from 3.2% in the third quarter of last year and 2.6% in the fourth quarter of 2022.

However, it wasn't all bad, as consumer spending soared for the three months ending in March, according to ABC News. 

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