The OPEC+ group, which also includes Russia, agreed today to reduce its production limits by 100,000 barrels of daily output starting this October. The decision surprised the markets and caused prices to rise more strongly. Analysts generally expected mining to remain at current levels.
The group’s next meeting is scheduled for early October.
Oil prices on the markets reacted to the surprising move with stronger growth. Brent rose by around 4% towards USD 97 per barrel. US WTI crude rose 3.% towards $90.
At the group’s penultimate meeting, there was a cosmetic output increase of 100,000 bd, which was seen as a gesture of goodwill in light of growing pressure from the US to increase output within the group.
Today’s reduction in production by 100,000 bd can therefore be perceived again primarily as a certain signal, rather a warning towards the West’s efforts to impose an embargo on Russian oil.
In the “industry” for more than 20 years. After several years of experience directly from securities trading, Vladimir Urbanek for the last more than 15 years, he has been covering domestic and foreign capital markets.
He considers the experience, or rather the possibility of comparison with the time before the last big crisis in 2008-9, to be important.