Azeri LT CIF crude oil price rose by $0.35 or 0.79% up to $44.52 a barrel. The lowest Azeri LT CIF price was on April 21, 2020 ($15.81), and the all-time high in July 2008 ($149.66).
OPEC+ will hold a committee meeting this week to assess the status of the oil market and decide its next steps. For now, the group appears ready to unwind the extraordinary production cuts, which could test the recent price rally. The historical reductions of 9.7 million barrels per day (MB/D) that OPEC+ implemented after the pandemic-related crash was always intended to be temporary. Initially, the cuts were set to expire at the end of June and begin tapering at the start of July; the group agreed to extend that first phase by a month.
As of now, the cuts are slated to expire at the end of July, reducing the cuts from 9.7 MB/D to 7.7 MB/D. Various press reports have suggested that the group is ready to let those cuts taper as scheduled, rather than push for another extension.
Keeping 9.7 MB/D off the market helped engineer a price rally to $40 per barrel and create an atmosphere of stability.