Oil prices soared on Tuesday as OPEC + and its allies including Russia being stuck to the plans on slightly increasing production starting May 1. It is claimed that the coronavirus crisis in India does not have a permanent effect on demand.
According to sources, OPEC + is also said to have abandoned plans to hold a full ministerial meeting on Wednesday. At the technical meeting on Monday, concerns were raised about the increase in COVID-19 cases, but the oil demand forecast remained unchanged.
Russian Deputy Prime Minister Alexander Novak announced after the talks that the panel decided to adhere to policies generally agreed upon at the previous 1 April meeting of OPEC +.
The plan adopted before the coronavirus surge in India will be adhered to.
Brent crude oil closed the session at $ 66.42 per barrel, up 77 cents, or 1.2%, after climbing to $ 66.51. West Texas InterMediate (WTI) oil rose $ 1.03, or 1.7%, to $ 62.94.
India, the third largest crude oil importer in the world, reported an increase of more than 300,000 cases daily over several days, and about 200,000 deaths in total.
The increase in OPEC + production despite the weakening of Asian oil demand is likely the result of the decline in the global oil supply surplus last year.
OPEC + and other than the group, the oil market is expected to be 1.5 million barrels short a day this year, with a modest production increase and a prudent approach. Among the predictions, Brent is likely to reach $ 75 a barrel in the second half of this year.
Another development that could add supply to the market is the talks that started in Vienna on Tuesday, aimed at revitalizing the 2015 Iran nuclear deal.
