{"id":110915,"date":"2021-03-30T22:14:13","date_gmt":"2021-03-30T22:14:13","guid":{"rendered":"https:\/\/fin2me.com\/?p=110915"},"modified":"2021-03-30T22:14:13","modified_gmt":"2021-03-30T22:14:13","slug":"oil-falls-as-suez-canal-reopens-dollar-rallies-eyes-on-opec-meeting","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/oil-falls-as-suez-canal-reopens-dollar-rallies-eyes-on-opec-meeting\/","title":{"rendered":"Oil falls as Suez Canal reopens, dollar rallies; eyes on OPEC+ meeting"},"content":{"rendered":"
NEW YORK (Reuters) – Oil prices slid more than 1% on Tuesday as the Suez Canal reopened to traffic and the U.S. dollar rallied.<\/p> Investors shifted focus to the upcoming OPEC+ ministerial meeting on Thursday, where analysts expect the group to extend supply curbs given dim demand prospects.<\/p>\n Brent crude fell 84 cents, or 1.3%, to settle at $64.14 a barrel while West Texas Intermediate U.S. oil ended the session down $1.01, or 1.6%, at $60.55 barrel.<\/p>\n The benchmarks held their losses in post-settlement trade after industry data showed U.S. crude inventories swelled by 3.9 million barrels last week, sources said citing the American Petroleum Institute\u2019s weekly report. Analysts in a Reuters poll forecast a build of about 100,000 barrels.<\/p>\n Government data is due on Wednesday at 10:30 a.m. EDT (1430 GMT)<\/p>\n Ships were moving through the Suez Canal again a day after tugs refloated the Ever Given container carrier, which had blocked the passage for almost a week. The backlog of 422 ships could be cleared in 3-1\/2 days, the canal\u2019s chairman said. [nL1N2LS0PW]<\/p>\n \u201cThe price gains that accumulated during the Suez blockade were, as expected, short-lived and are now being erased with the gradual return to normal traffic,\u201d Rystad Energy\u2019s oil markets analyst Louise Dickson said.<\/p>\n The dollar rose against major currencies and climbed to a one-year high against the yen. A firmer greenback makes oil priced in dollars more expensive in other currencies.<\/p>\n With concerns about a shortage of physical supplies abating, the market will watch Thursday\u2019s meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, collectively known as OPEC+.<\/p>\n Saudi Arabia is prepared to accept an extension of production cuts through June and to prolong its own additional cuts amid the latest wave of coronavirus lockdowns, a source briefed on the matter said on Monday.<\/p>\n \u201cThe wobble we have seen in prices means that OPEC+ will likely need to take a cautious approach once again,\u201d bank ING said. \u201cWe are of the view that the group will likely hold output levels unchanged.\u201d<\/p>\n JPMorgan believes OPEC+ will largely roll over its production cuts into May and that Saudi Arabia will extend its voluntary cut by two more months until the end of June.<\/p>\n \u201cWe expect the alliance to start adding production in 500,000 barrel per day (bpd) increments beginning in June and lasting through August,\u201d it said in a research note.<\/p>\n Renewed lockdowns and problems with vaccinations could prevent the recovery of up to 1 million bpd of oil demand in 2021, Rystad Energy said.<\/p>\n One challenge in capping global supply is under-the-radar exports by OPEC member Iran to China, ignoring U.S. and U.N. sanctions on Tehran, according to traders and analysts.<\/p>\n China could receive up to 1 million bpd of Iranian crude this month passed off as crude from other origins, they said.<\/p>\n