A barrel of Brent oil has been trading at more than sixty dollars for nearly two weeks. In recent hours, the price has even drawn up the $65 mark. Oil is more expensive than before the coronavirus pandemic erupted, and pressure on OPEC is growing.
“We’re in a far better position than we were a year ago. However, I must warn repeatedly that we do not fall asleep on our laurels. Uncertainty is still too high, so we must be extremely cautious,” said Saudi Arabia‘s oil production minister.
Meanwhile, oil futures indicate further growth in the oil price due to thinning inventories in the market. These are due to diminish in the weeks and months of this year as well. Unless the OPEC and OPEC+ group of countries expand production, the price of oil could continue to rise.
In doing so, states around Saudi Arabia or Russia do not believe much that oil demand should increase enough in the coming weeks or months to make a strong improvement in black gold. “The events of last year should have taught us to be cautious,” Saudi Arabia’s oil production minister added. According to him, no one should try to guess how OPEC+ will respond to current developments. “Never try to estimate the unestimable,” the politician added.