OPEC is expected to extend production cuts and stabilize oil prices in April

International oil prices rose on Monday, with U.S. oil and oil distribution both rising by more than 1%. By closing, WTI crude oil futures closed up $0.72, or 1.28%, at $56.79 a barrel in April. Brent crude oil futures closed up $0.84, or 1.28%, at $66.58 a barrel in May. In addition, SC1904, the main contract of crude oil futures in the previous period, closed up 13.20 yuan, or 3.05%, at 445.30 yuan per barrel.

According to media reports, Saudi government sources recently revealed that Saudi Arabia plans to push for an extension of production cuts at the April meeting to stabilize crude oil prices.

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At the same time, the news also effectively alleviated the weak demand worries caused by last week’s non-farm report in the United States, and encouraged the confidence of crude oil bulls.

On the other hand, Saudi Arabia said that its crude oil export in April will be reduced to less than 7 million barrels per day, which means that Saudi oil production will be about 30% lower than the target of 10.311 million barrels per day, and the reduction will be about 2 million barrels per day.

In addition, data from Beckhughes, a US oil service company, showed last Friday that the number of active oil drillings in the United States fell by 9 to 834 from a 10-month low last week, partly alleviating market concerns about rising U.S. crude oil production.

In fact, U.S. crude oil production remains one of the greatest threats to OPEC’s production cuts. Last week, data from the U.S. Energy Information Agency (EIA) showed that U.S. crude oil production remained at a record high of 12.1 million barrels per day, which has inhibited the boosting effect of the cuts on oil prices.