Baku, Azerbaijan, April 11
By Leman Zeynalova – Trend:
OPEC Reference Basket (ORB) reached its highest level in March 2019 since October 2018, Trend reports citing OPEC Monthly Oil Market Report (MOMR).
The ORB continued to rally in March for the third consecutive month amid strengthening oil market fundamentals and improving market sentiment, which were supported by the commitment of OPEC and participating non-OPEC countries to restore global oil market stability, reads the report.
The cartel said that OPEC and participating non-OPEC countries have improved their conformity levels with their production adjustment in February 2019 to almost 90 percent, which is up from 83 percent in the month of January.
“M-o-m, the ORB closed March at $66.37/b, its highest since October 2018, after hovering around $67/b in daily basis,” said OPEC.
The report shows that throughout the month, prices have been bolstered by strong physical crude demand, especially from Asia Pacific, and lower crude availability due to persistent geopolitical tensions, as well as expectations for continued market balancing by OPEC and participating non-OPEC producing countries.
“Moreover, despite the fact that refinery maintenance is expected to peak in April and May in Asia, demand for crude remained healthy and crude oil differentials strengthened, particularly for medium and heavy sour grades,” said the report.
On 9 April, the ORB stood at $70.35/b, $3.98 above the March average, according to OPEC estimates.
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