Bullish Oil Signals Proliferate as OPEC Cuts Get Even Deeper
- Meeting in Jeddah is said to see 97% of stockpile surplus gone
- OPEC and its allies said to make record output cuts in March
Photographer: Martin Divisek/Bloomberg
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Crude has surged to a three-year high, the stockpile surplus is all but gone and OPEC’s choke-hold on its own production is only getting tighter. As oil ministers gather in Saudi Arabia, the $80 a barrel the kingdom desires is inching closer.
“The petro-nations seem willing to over-tighten the market, with the current price levels fostering confidence in their supply deal,” Norbert Ruecker, head of macro and commodity research at Julius Baer, said in a note. The political noise over Syria and Iran “fuels the exceptionally bullish market mood.”