Crude oil keels over as Suez Canal reopens; traders eye OPEC+ meet

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Crude oil keels over as Suez Canal reopens; traders eye OPEC+ meet

On Tuesday, both Brent and US WTI (West Texas Intermediate) crude oil futures had been foundered more than 1 per cent, as the Suez Canal traffics have been in motion again and a stronger US Dollar alongside a sharp uptick in US long-term Treasury bond Yields had poured fresh scorns over riskier assets amid prospects of a inflation-hike in a near term.

Aside from that, analysts’ anticipation of an extension of current output cuts in a Thursday meet of OPEC+ members, had dimmed demand prospects, while a sharp rise in US crude stockpiles last week, fanned up the flames further.

Adding further strains, earlier in the day, US EIA (Energy Information Administration) was quoted saying that US crude inventories rose 3.9 million barrels last week. Besides, a JPMorgan client notes saying the OPEC+ member states would likely to extend present output cuts at least until May on Thursday’s meet and the OPEC-Kingpin Saudi would stretch out its voluntary production cuts by two more months, also dampened oil futures’ outlook.

Crude oil falters as OPEC+ meet on focus

Citing statistics, in the day’s commodity market closure, UK crude futures tumbled 1.3 per cent to $64.14 per barrel, while US WTI crude oil futures’ prices took a tattering header of 1.6 per cent to settle down at $60.55 a barrel.

Meanwhile, forecasting another leg of cautious approach from OPEC+ members amid a mass-scale lockdown measure alongside vaccination delays in Europe, bank ING wrote in a client note, “The wobble we have seen in prices means that OPEC+ will likely need to take a cautious approach once again. We are of the view that the group will likely hold output levels unchanged.