Oil continues to rise with the “OPEC +” direction of reducing production by two million barrels

Oil went up after making an alliance “OPEC +” It is evaluating the possibility of lowering the production limit to two million barrels per day, twice as much as previously foreseen.

West Texas Intermediate crude was trading close to $ 86 a barrel, after climbing as much as 4%. OPEC’s decision could lead to the alliance’s largest reduction from the deep cuts that occurred at the start of the pandemic, but the actual impact on global oil supplies could be far less, as many members are already pumping far less. of their shares.

“Potential cuts from 1 million barrels a day to 2 million barrels would mean a more aggressive approach,” said Stacey Morris, head of energy research at Alerian VettaFi. “This could signal greater concern for demand and the health of the global economy.”

Read also: Bloomberg: “OPEC +” plans to reduce oil production by nearly two million barrels per day

Morris said the new number increases the potential risks of the OPEC + + meeting scheduled for Wednesday, adding that the smaller cut could be disappointing. Expectations of production cuts have raised prices, with West Texas Intermediate crude up more than 5% on Monday in its largest increase since July.

At the same time, the G7 countries will announce a cap on the price of Russian oil “significantly before December 5”, the date on which they will enter EU sanctions in effect, according to a US Treasury official. Although the limit is designed to keep the flow of Russian oil flowing, Moscow has threatened to cut crude supplies to any country that abides by a price limit.

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