Oil powers ahead as key Opec+ meeting looms, markets rally

Oil powers ahead as key Opec+ meeting looms, markets rally

Bloomberg

Oil rebounded from its biggest slump since November ahead of a key Opec+ meeting that may see some supply returned to a fast-tightening market. Futures in New York rose above $62 a barrel. The alliance gathers on Thursday and is expected to loosen the taps after prices got off to their best ever start to a year. But it's unclear how robustly the group will act, with the Saudi Arabian energy minister calling for producers to remain "extremely cautious.“ Oil's recovery from the impact of the pandemic has been driven by Asian demand, as well as fiscal and monetary stimulus. Data on Monday showed most key manufacturing economies gained ground last month, with China staying in expansionary territory. Positive sentiment in equity markets also aided crude, while President Joe Biden's $1.9 trillion relief plan moved closer to realisation after passing the House of Representatives. Saudi Arabia's output curbs, the improving demand outlook as vaccines are rolled out, and the growing popularity of commodities as a hedge against inflation have pushed oil higher this year. There has been a raft of bullish calls in recent weeks predicting the rally will continue as the producer response trails consumption, while maintenance in North