Investors anticipate that OPEC and its partners, also known as OPEC +, would reduce production by more over 1 million barrels per day on Wednesday during their first in-person meeting since 2020, according to Bloomberg Agency. This occurs in the midst of rising supply fears, a weaker US currency, and hopes that OPEC+ will agree to a large cut in petroleum production.
Tuesday’s oil prices
And at 3:38 PM EST, the benchmark price for December delivery, Brent crude futures, increased 2.99% to $91. 52 per barrel.
According to Bloomberg Agency, the price of futures contracts for US West Texas crude for November delivery increased 3.04 percent to $86.17 a barrel.
The largest cut since the start of the Corona pandemic, according to OPEC sources, may occur voluntarily by members after the OPEC + alliance meets tomorrow, Wednesday. Kuwaiti Oil Minister Muhammad Al-Farsh emphasised that OPEC + will make the right decision to ensure energy supplies and serve the interests of producers and consumers.
According to Edward Moya, a senior analyst at OANDA, “OPEC+ has never been this strong and will do whatever it takes to ensure that crude oil prices are supported,” despite everything that is happening with the situation in Ukraine. Due to the destruction of demand brought on by the Corona pandemic, 2020 is expected to be a record year for oil production; however, some coalition countries have struggled to meet planned production increases in recent months, which caused them to fall about 3. 6 million barrels per day short of the target in August.
OPEC+ has never been this strong and will do all it takes to ensure prices are supported, according to a report by senior analyst Edward Moya at OANDA. record in 2020 due to the demand damage brought on by the Corona epidemic. However, the organisation has been unable to reach the targeted production increases—which it did not do in July—by 2. 9 million barrels per day over the preceding few months.
Oil prices have declined for four months running as the COVID-19 shutdown in China, the world’s largest oil importer, reduced demand. At the same time, major central banks began their largest round of interest rate increases in decades, placing pressure on international financial markets.
A preliminary Reuters poll conducted on Monday revealed that US crude oil stockpiles rose by over two million barrels in the week ending September 30, igniting concerns of a worldwide economic slowdown.
Rising anticipation of a substantial output cut cause global oil prices.
About Author
