Opec+ faces calls to cool crude market frenzy with extra barrels

Opec+ faces calls to cool crude market frenzy with extra barrels

Bloomberg

From trading houses in Geneva to Wall Street banks, much of the oil world agrees that global markets could use some more barrels. The big question is whether Opec+ will provide enough of them. A crude glut that piled up during the pandemic is vanishing fast. Global inventories are plunging at the steepest rate in two decades, according to Morgan Stanley. Prices have rallied to pre-virus levels, while US production has taken a hit from freezing storms. Talk swirls of market supercycles, and even the return of $100 oil. With the need for more supply evident, traders expect the Opec+ coalition, led by Saudi Arabia and Russia, will agree to increase production when it meets on March 4, reversing some of the output cuts made last year. But it's unclear if the group will act vigorously enough. Wary of the virus's persisting threat to demand, Saudi Energy Minister Prince Abdulaziz bin Salman has urged fellow producers to remain "extremely cautious.“ If the alliance agrees an output hike that falls short of requirements, however, it could trigger a further price surge “” and the group would be forced to deal with its unwelcome consequences. "There's a real risk they're going to