The worldwide recession and weak oil demand, particularly in China, outweighed the assistance obtained from OPEC+ the output goal, causing oil prices to decline by more than 3% during trade on Friday.
falling oil prices
US West Texas Intermediate crude futures sank by $3. 50, or 3. 9%, to close at $85. 61 while Brent crude futures decreased by $2. 94, or 3. 1%.
Most of the Friday session saw Brent and western Texas fluctuate between increases and decreases, but the first last week fell by 6.4% and the second by 7.6%.
Inflation The main infection in the United States has recorded its largest annual increase in 40 years, which strengthens the opinions that interest rates will remain higher for a longer period with the risk of global recession.
Early November is when the next US interest rate decision is expected to be announced. A poll revealed that while consumer confidence in the US kept steadily rising in October, family inflation forecasts actually decreased significantly.
Making the timely decision to cut back on oil output
The “OPEC+” coalition announced that oil production was reduced by two million barrels per day, after a meeting held on October 5 directly since March 2020, in the Austrian capital Vienna.
The decision aroused the ire of the American administration, as US President Joe Biden expressed his “disappointment”, after the decision was issued directly, and described the reduction of production as “short -sighted decision”, given what it will have “more negative impact on low -income countries It already experiences problems due to rising energy prices.
The Ministry of Foreign Affairs said in a statement two days ago that the action is based exclusively on “purely economic” grounds intended to minimise the oscillations of the oil market. However, Saudi Arabia denied the criticisms hurled at it as a result of the decision.
The decision “fell in line with the effective strategy taken by the OPEC+ group in adopting proactive steps that would minimise any imbalances in the oil market, notably on both sides of demand and supply,” the Secretary-General of “Oppick” said in a statement.
“Ask anticipations
Last Wednesday, OPEC reduced its expectations for the growth of oil demand for the current year by 500 thousand barrels per day, and for the year 2023 also by 400 thousand barrels, or a total of 900 thousand barrels, according to the organization’s monthly report data.
In his statement, “Bin Sabt” emphasised that the major objective of the “OPEC+” decision is to ensure stability and balance in the global oil market and to bring oil prices to levels that are acceptable to all market participants.
Oil prices today amid worries of a recession
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