Categories: Uncategorized

OPEC+ agrees to small cut of oil production target

OPEC and its Russian-led allies agreed on Monday to a small cut in oil output to lift prices that have fallen on fears of an economic slowdown.

In October, oil producers will reduce production by 100,000 barrels per day (bpd), equivalent to just 0.1% of global demand.

The group also agreed to meet at any time to adjust production before the next meeting scheduled for October 5th.

Oil prices, which rose more than $2 a barrel on Monday, added to gains after the OPEC+ decision.

Brent futures for November delivery rose $3.42 to $96.44 a barrel, a gain of 3.68% as of 10:00 am ET. WTI crude advanced $2.97, or 3.42%, to $89.84.

The decision essentially maintains the status quo, as OPEC has seen sharp fluctuations in oil prices, pulled by various factors in both directions.

“OPEC+ is wary of prolonged price volatility generated by weak macro sentiment, poor liquidity and new lockdowns in China, as well as uncertainty over a possible US-Iran deal and efforts to cap the price of Russian oil,” he said. Matthew Holland of Energy Aspects.

Saudi Arabia, OPEC’s top producer, last month signaled the possibility of production cuts to deal with what it sees as exaggerated drops in oil prices.

Signs from the physical market, however, suggest that supply remains tight and many OPEC states are producing below targets, while new Western sanctions are threatening Russian exports.

Source: CNN Brasil

Published by

Recent Posts

EUR/CHF: A stabilization above parity seems likely — ING

The Swiss franc rose after the SNB raised interest rates. The ING Economists They expect…

10 mins ago

China military says US warship illegally entered waters in South China Sea

China's military said on Thursday it had monitored and turned away a US destroyer that…

10 mins ago

Tanzania confirms high-lethal Marburg virus outbreak

Health authorities in Tanzania confirmed on Tuesday (21) an outbreak of the Marburg virus disease,…

22 mins ago

Romy Mars, daughter of Sofia Coppola, did it big and it went viral

Romy Marsborn in 2006, is the daughter of the famous director Sophia Coppola and of…

23 mins ago

A weaker dollar is more likely if the Fed changes its tone significantly — MUFG

The US dollar is weakening strongly. The FOMC's change of tone will weaken the dollar,…

31 mins ago

US: Chicago Fed National Activity Index falls to -0.19 in February, vs. 0 expected

The Chicago Fed's national activity index fell more than expected in February. The DXY Dollar…

39 mins ago