Opec+ rolls quotas into April including Saudi extra cut

Opec+ members have agreed to roll over current production quotas for another month, with another exception for Russia and Kazakhstan, and Saudi Arabia has opted to extend its voluntary 1mn b/d cut into April, delegates said.

Saudi Arabia will gradually increase production after April, a delegate said. Russia and Kazakhstan will receive special dispensation to increase production, two delegates said without disclosing numbers. In January, Opec+ decided to increase official collective crude production by 75,000 b/d in February and another 75,000 b/d in March, split between Russia and Kazakhstan.

Front-month Ice Brent crude prices rose today to $67.10/bl as of 16:10 GMT, the highest since January 2020.

The Opec+ production quotas are 7.05mn b/d below the October 2018 baseline this month, excluding the additional voluntary cut from Saudi Arabia in February and March.

Saudi Arabia and Russia, the de facto heads of the Opec+ coalition, urged caution and vigilance ahead of today's meeting. A delegate told Argus today that although there is a "brighter" demand picture and falling stocks, there are longer-term uncertainties relating to backwardation in Brent crude futures, with the possibility of production from the US, Libya and Iran returning.

By Rowena Edwards, Nader Itayim and Ruxandra Iordache