OPEC and Russia announced production cuts, oil prices soar

The decision surprised analysts. They expected production to remain at the level agreed in August. It was then that the group decided to increase production at the insistence of US President Joe Biden. Now she reversed this decision.

At the same time, OPEC stated in its statement that it is ready to convene a meeting of the energy ministers of the OPEC+ countries at any time if the market situation requires it.

While the cut is “insignificant in terms of volume and more likely to signal that OPEC+ is returning to price watch mode,” Bill Farren-Price, senior analyst at Enverus, commented, he said the group hopes the move will deter speculators in the market.

Gas has risen in price by 170 percent this year, oil by 30 percent

Economy

The news of a reduction in the production target drove the price of the commodity higher. A barrel of Brent North Sea oil was sold for almost 96.5 dollars (CZK 2,400) on Monday afternoon, which is an increase of 3.7 percent compared to Friday.

The price of light American WTI oil also showed a similar growth. It claimed almost 3.5 percent with a price of less than 90 dollars (2230 CZK) per barrel.

Brent was selling for more than $120 (CZK 2,980) per barrel in June, but last week the price fell to $90 due to fears of a recession. At the beginning of the year, before the war in Ukraine, the price was even ten dollars lower.

The article is in Czech

Tags: OPEC Russia announced production cuts oil prices soar

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