Oil prices witnessed a state of rise, especially after a report indicated a decline in US crude inventories before the OPEC+ meeting, during which the group is expected to maintain cuts in current supplies, and Brent crude approached $89 per barrel after it was closed on Tuesday, April 2. 2024 at the highest level since October.

The price of Brent crude oil reached about $85, and the American Petroleum Institute stated that inventories across America decreased by more than two million barrels over the past week, and OPEC and its allies are expected to review the situation of crude oil markets and supply policy in an online meeting on Wednesday, and it is scheduled to… Members remain on their general strategy unchanged.

As for the rise in the price of crude oil, it is due to the Russian-Ukrainian attacks on the Russian energy infrastructure in addition to tensions in the Middle East, which leads to support prices as OPEC’s restrictions led to tightening the market, despite the failure of some members to implement their agreed-upon cuts in full, in addition to the rise in Russian exports.

The OPEC+ virtual meeting is expected to reaffirm the group's current policy as Brent crude futures approach $75-$80 per barrel over the coming months. Oil demand in China is expected to grow but will be disappointing.

Oil markets witnessed a state of rising optimism as traders increasingly looked to hedge against rising prices. As the deviation for Brent options contracts for the next month reversed from the deviation from the usual put options contracts, producers who aim to hedge against falling prices prefer buying contracts, and this came through the price differences between oil contracts, which is considered another indicator of price strength.