Oil prices remain steady
Oil prices remained steady following a three-day decline, as Saudi Arabia stated that the latest OPEC+ cuts would be fully complied with and could be extended.
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Global benchmark Brent held above $78 a barrel after falling more than 6% in the previous three sessions, while U.S. crude traded above $73. Saudi Energy Minister Prince Abdulaziz bin Salman told Bloomberg News that the recently decided cuts would "overcome" the expected stock build in the first quarter and could be extended through 2024 if needed.
Crude oil has been under downward pressure since the meeting of the Organization of the Petroleum Exporting Countries and its allies last week, as investors remain unconvinced about the extent to which the voluntary cut package will be fully implemented under pressure. Analysts highlighted the group's increasing spare capacity, stating that investors need to see evidence regarding the implementation and impact of the cuts. The meeting was delayed by several days and was marked by internal disagreements.
Vishnu Varathan, head of Asia economics and strategy at Mizuho Bank, said, "There are doubts about compliance in the context of OPEC's more fragile internal dynamics. Following the meeting, we have seen an increase in non-OPEC supply, as well as geopolitical tail risks and a decline in demand."