Everbright Futures: Crude oil remains strong before the holiday, watch for geopolitical developments during the holiday period

OPEC’s eight member countries will hold their monthly meeting this Sunday. OPEC and the eight major oil-producing countries outside of OPEC are expected to discuss another increase in output. OPEC previously issued a statement on March 1st stating that the eight major oil producers decided to increase daily production by 206k barrels in April. Two informed sources revealed that the alliance is highly likely to push forward a new round of nominal production increases, preparing for the rapid release of crude oil after the Strait of Hormuz resumes navigation. Currently, it is important to note that the implementation of the increased production plan depends on the Strait’s navigation, and this expectation will likely continue to be delayed. Oil prices have fluctuated, but overall, with changes in the governance structure of the Strait of Hormuz, the price center may continue to rise, and market reactions to news will remain quite sensitive. (Everbright Futures)