Oil prices rose after OPEC+ cancelled its April meeting and will now meet in June with the fate of their output limit to be decided. The deal spearheaded by Saudi Arabia and Russia has brought OPEC and other major producers onboard in reducing daily production by 1.2 million barrels.
Oil prices have been dictated by how the delicate balance between rising US production and the OPEC+ production limit is broken by external factors. This week the news of the deal continuing without change until June has boosted crude prices.
The two de facto leaders of the OPEC+ appear to be onboard for extending the agreement beyond its June deadline, but will face some resistance from OPEC members who have seen their revenues shrink and do not have the deep pockets to keep tightening their belts.
Energy demand has increased, but its subject to a successful trade agreement between the US and China. Talks of a delay have raised concerns, although both sides remain support of a positive outcome. President Xi and Trump were expected to meet this month, but that meeting might not occur until early June.
The OPEC+ deal has brought stability to crude prices and signs of an extension have taken crude higher, the ball is now on the US production side with the weekly crude inventories an upcoming indicator to be taken into consideration when its released on Wednesday.