ERHC Energy Inc (ERHE)

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Great news for crude , WTI up about 5 bucks already tonight

April 2, 2023 at 10:14 AM EDTUpdated onApril 2, 2023 at 6:02 PM EDT

WTI Crude
80.85USD/bbl.+5.18+6.85%
GC1

Open
OPEC+ announced a surprise oil production cut of more than 1 million barrels a day, abandoning previous assurances that it would hold supply steady and posing a new risk for the global economy.

It’s a significant reduction for a market where — despite the recent price fluctuations — supply was looking tight for the latter part of the year. Oil futures soared as much as 8% at the open on Monday, adding to inflationary pressures across the world that may force central banks to keep interest rates higher for longer and crimp economic growth.

Saudi Arabia led the cartel by pledging its own 500,000 barrel-a-day supply reduction. Fellow members including Kuwait, the United Arab Emirates and Algeria followed suit, while Russia said the production cut it was implementing from March to June would continue until the end of the 2023.

“OPEC+ clearly want a higher price,” said Gary Ross, a veteran oil consultant turned hedge fund manager at Black Gold Investors LLC. The group “is following through on being proactive and ahead of the curve, and is trying to rip oil prices from the grip of” macro sentiment.

jmho