April began with positive dynamics in the oil market: at the moment, Brent quotations rose to the level of $87.43 per barrel, for the first time in two weeks. North American WTI crude oil rose to $83.60. Both benchmarks closed higher in March for the third month in a row. Prices are supported by expectations of supply cuts from OPEC+ and positive data on production in China, which have pushed up the prospects for improving demand. The price of Brent has been held above the level of $85 per barrel since the middle of last month, as OPEC+ plans to extend production cuts until the end of June, which may lead to a decrease in crude oil supplies in the summer in the Northern Hemisphere. Russian Deputy Prime Minister Alexander Novak said that oil companies will focus on reducing production rather than exports in the second quarter in order to evenly distribute production cuts among other OPEC+ member countries. In Europe, oil demand was more stable than expected and increased by 100,000 barrels per day in February, compared with a forecast reduction of 200,000 barrels per day. Sustained demand in Europe, slow supply growth in the United States, combined with a possible extension of OPEC+ cuts until the end of 2024, outweigh the risks of declining demand due to continued weakness in demand in China. In addition, U.S. crude oil production fell by 6% in January from a record high in December due to cold weather, which also supported oil prices.
