Until recently, everything indicated that OPEC + would keep production unchanged in February compared to January (this month production was increased by half a million barrels compared to the previous limit). This scenario was first of all persuaded by Saudi Arabia, Kuwait and Angola. On the other hand, we had the United Arab Emirates that wanted to increase production by 0.5 million barrels per day, which in February would have resulted in a production cut of 6.7 million barrels per day compared to the group's reference level.
However, Russia prefers to increase production in February by 0.5 million barrels per day, which would go hand in hand with a different reference to the global oil stocks. The world would not be compared to 2010-2014, but to the 2015-2019 average, which is obviously significantly higher. Such an approach would give a chance to increase production faster. In view of such revelations, the price of oil is clearly falling. WTI retreated below $ 47.5 a barrel.
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Oil is trading lower. Moreover, pullback took place even despite rumors of keeping the production level unchanged. The closest support lies around US $ 46.3 per barrel. Source: xStation5
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