Oil prices go up, traders wait for the OPEC meeting
Oil prices have been going up early on April 9. Traders expect new production cuts after the OPEC meeting, that is going to take place later in the day.
Brent crude futures have gone up by 87 cents - 2.6% - and reached US$33.71 per barrel. The contract has been going up for two days straight and reached US$33.90. WTI crude have risen by US$1.27 - 5% - and reached US$26.36 per barrel.
OPEC + members are supposed to talk via a video conference meeting. The negotiations are expected to reach a more positive result than their previous meeting in March. Then the representatives failed to reach an agreement over more supply cuts, which caused a heated price war between Saudi Arabia and Russia.
Optimism of trader has been reinforced by media reporting, that Russia is ready to cut its production by 1.6 million barrels daily. Algerian energy minister has also stated, that the negotiations will be “fruitful”. The traders are hoping, that countries will agree to cut from 10 million to 15 million bpd - that would be the largest production cut in OPEC’s history.
The meeting will be followed by the convention of G20’s energy ministers. The officials will be discussing methods of helping the market heavily impacted by COVID-19.