- Oil is trading higher, near $85.70, extending gains from yesterday
- WTI prices have risen to the highest level since October, as tight supply and stronger-than-expected demand continue to impact the market
- OPEC+ keeps production cuts in place (BBG)
- OPEC has decided to leave their policy unchanged at an online meeting of key panel members on Wednesday
- The roughly 2 MMBbl/d supply cut will remain in place until at least the end of June, while the alliance may decide to extend the cuts through the end of the year
- Despite the cuts tightening the market, Iraq and Kazakhstan have not implemented their agreed-upon output cuts
- JPM and Standard Charter believe OPEC may relax its production cuts at the next meeting in June, while other forecasters believe an extension of the cuts to be more likely
- US cancels latest SPR refill (BBG)
- Due to the recent rise in oil prices, the DOE has canceled its recent bid for 3 MMBbls of oil for delivery to the SPR
- The Biden administration has been targeting a price of $79/Bbl or lower to refill the SPR, although they spent an average of $81/Bbl in their latest purchase of 2.8 MMBbls last month
