On February 19th, Henning Gloystein, the head of energy and climate at Eurasia Group, wrote in a research report that “OPEC+is eager to increase oil production in the second quarter, and the current market conditions suggest sufficient demand for increased production in the Middle East. The spot premium in the Brent crude oil market means that demand exceeds production, which may create an opportunity for OPEC+to increase production in April. Due to the inability of the United States to increase production of light, low sulfur crude oil to meet the demand in Asia, OPEC+may slightly increase supply in the second quarter However, OPEC+may also delay production increase again, especially when Brent spot prices fall below $70 per barrel.
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