Over the past few days, we have been seeing a lot of Red next to ticker symbols throughout the NYSE but that is not the case for oil and gas futures. Yesterday on 3/4/21, Oil futures rallied with their highest finish since 2019 caused by talks of rolling over current production cuts to the end of April. OPEC+ also approved a continuation of production levels of March for the Month of April.
After 2020’s unpredicted decline in oil prices and subsequent response by OPEC+ to cut oil production as means to buoy oil prices, the world’s largest exporter Saudi Arabia, plans to reverse its position and increase its production in the coming months. This comes as WTI oil prices have traded to as low as negative $40/barrel back in April 2020, to currently trading at $60.42/barrel. Earlier this month OPEC+ leaders said they would cut production by one million barrels per day, with efforts to raise prices during the months of February and March.
Many investors are awaiting the OPEC+ decision on whether they plan to increase oil production even as the Covid-19 virus brings fear of another spike in cases.