Oil dips as Opec+ agrees to ease cuts, India virus cases surge

Oil dips as Opec+ agrees to ease cuts, India virus cases surge

Bloomberg

Oil fell after Opec+ decided to increase output from next month and coronavirus cases in India surged, potentially sapping demand in the world's third-biggest importer. West Texas Intermediate and Brent dropped around 2.6%, paring gains. Opec+ opted last week to raise production by more than 2 million barrels a day between May and July. Crude has rallied this year as vaccine rollouts help major economies reopen. The decision by the Organization of Petroleum Exporting Countries and its allies was seen as a vote of confidence in the outlook for energy demand. The US also added more than 900,000 jobs in March, the most in seven months. Still, while that bodes well for oil demand, significant risks “” such as the uptick in Indian cases “” attest to a complex global picture. Saudi Energy Minister Prince Abdulaziz bin Salman said after the Opec+ decision that the group can still reverse course if necessary at its next meeting on April 28. "Opec+ tapering was more of a compromise“ than a sign of confidence in the market's recovery, said Vandana Hari, founder of Vanda Insights in Singapore. A rollover "might have strained the cohesion in the alliance.“ Goldman Sachs Group Inc remains bullish,