#Oil Prices Surge By Over $2 Per Barrel As #OPEC+ Targets Massive Output Cut (3 OCTOBER 2022)
The prices of oil jumped by more than $2 per barrel on October 3, pushed by expectations that oil cartel OPEC and its allies (OPEC+) would introduce a huge production cut to boost the market.
Many news publishers citing anonymous sources, reported over the weekend that OPEC and its allies including Russia, cumulatively known as OPEC+ would consider an oil output cut of at least a million barrels per day at their October 5 meeting.
Singapore-based UOB Global Economics & Markets Research commented in a note:
“If this comes to pass, it will be the biggest move yet since the COVID-19 pandemic.”
OPEC+ in early September agreed to mildly cut production by 100,000 barrels per day. Russia had proposed in the past week a one million barrels per day supply cut but there have been no viable suggestions from other members on the possible size of any output cuts, based on Dutch banking and financial services company ING.
It stated:
“In August, OPEC+ production was estimated at around 3.37m bbl/day below target production levels. So in reality, any cut in supply will likely be smaller than whatever figure the group announces.”
The prices of oil have continued to drop steeply since June 2022 due to global economic growth worries, a stronger US dollar, and fears over continuous lockdowns in China amid the nation’s zero-COVID policy.
In the third quarter, Brent crude plunged by 23% while US WTI shed by 25% during the period. Brent crude reached a 9-month low of $83.65 per barrel on September 26.
0 comments:
Post a Comment