A surprise decision on Thursday spurred a wave of crude price forecast upgrades by major banks and a surge in the market's structure. Saudi Arabia said it would maintain its 1 million barrel per day voluntary production cut.
The surprise decision on Thursday spurred a wave of crude price forecast upgrades by major banks and a surge in the market’s structure. The agreed to hold output steady in April, while Saudi Arabia said that it will maintain its 1 million barrel-a-day voluntary production cut. West Texas Intermediate rose as much as 2.6% and Brent topped $68.
"Overall, this was the most bullish outcome we could have expected," JPMorgan Chase & Co. analysts including Natasha Kaneva wrote in a note to clients. Saudi Arabia’s bold and unexpected gamble to restrain production is founded upon its view that, this time around, higher prices will not lead to a big increase in output by American shale drillers. Saudi Energy Minister Prince Abdulaziz bin Salman told Bloomberg News in an interview after the OPEC+ meeting that shale companies are now more focused on dividends.Brent for May traded 2.8% higher at $68.