The market price of Brent crude, according to Chris Beck, chairman of VTTI and a member of Vitol’s executive council, is between $80 and $100 per barrel.
These anticipations precede the “OPEC +” alliance’s anticipated meeting today to negotiate a large decrease in petroleum production.
The price of oil decreased marginally on Wednesday after increasing by more than 3% the previous session.
Dealers claimed that the gain in the dollar was mostly to blame for the minor drop in pricing because it decreased demand from customers using foreign currencies.
After increasing $2. 94 the previous session, Brent oil, the worldwide standard, slipped 22 cents, or 0. 2 percent, to $91. 58 a barrel at 0427 GMT.
US West Texas Intermediate oil futures decreased by 29 cents, or 0.3%, to $86.23 a barrel after increasing by $2.89 the day before.
According to a source close to OPEC, the so-called OPEC+ grouping, which consists of Russia-led allies and OPEC members, will meet in Vienna later on Wednesday to discuss production cuts of up to 2 million barrels per day.
This would be the biggest production drop by OPEC+ since the Covid-19 outbreak struck demand in 2020.
According to a reliable source who spoke to Reuters, President Joe Biden is trying to stop an increase in gas prices in the United States while the United States is pressing “OPEC Plus” producers to avoid making drastic cuts.
A lower production target won’t have a significant effect on supply because several OPEC+ nations currently pump far less than their present quotas. “OPEC +” fell short of its production goal by 3. 58 million barrels per day in August.
The agreement on the severe cuts, according to ANZ Research analysts, “would send a strong message that the group is determined to support the market,” and it would “lead to a major tightening of the market,” they added in a note.
According to data from the American Petroleum Institute, US crude oil stockpiles decreased by 1. 8 million barrels for the week ending September 30.
By the end of the year, Vitol anticipates Brent crude to rise to close to $100.
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