Crude oil hit $86.14/b as supply sentiment remains firm while OPEC+ holds steady on crude oil production rises. Demand recovery from impacts of COVID-19 coupled with a conservative approach from the OPEC+ alliance to raise its crude oil production has been providing support to the complex lately. Supply tightness has also been exacerbated by the inability of some OPEC+ countries to raise production quickly to match monthly increments in quotas. An analyst from ING said “Comments from the Saudi energy minister which suggest that OPEC+ will continue to take a cautious approach in increasing output is likely providing some support to the market, particularly with other members of OPEC+ echoing the Saudi view”.
- OIL FUTURES: Crude bounces past $86/b mark as supply outlooks hold firm