Oil Surges Past $70 as Saudi Attack and OPEC+ Decision Drive Prices
Oil prices surged today as a drone attack on a Saudi Arabian oil terminal and OPEC+'s decision not to increase production pushed Brent crude past $70 per barrel for the first time since January 2020.
The price of May futures for North Sea Brent crude oil climbed to $71.38 per barrel during trading. This increase was partly driven by a drone attack on an oil terminal in Saudi Arabia, which disrupted supply and raised concerns about security. Meanwhile, OPEC+ decided not to increase oil production in April, with the exception of Russia and Kazakhstan, who were allowed to increase their daily output by 130,000 barrels and 20,000 barrels respectively. This decision was made in response to the recovering global economy and increasing demand for oil, as well as to manage inventories and balance supply and demand. The price of April WTI futures stood at $67.41 per barrel as of 10:00 AM in Nur-Sultan.
The Brent crude oil price has now surpassed $70 per barrel, a significant milestone not seen since the beginning of 2020. This increase, driven by both supply disruptions and a recovering global economy, signals a strong rebound in the oil market. However, the situation remains fluid, and further developments in production and geopolitics could influence future price movements.
