Thus, OPEC is ready to convene a meeting of the energy ministers of OPEC+ countries at any time, if the market situation warrants it. The meeting took place on January 5.
Brent crude oil sold for less than 120 dollars per barrel in July, but last week it fell to 90 dollars due to fears of a recession caused by the effects of the wolf on Ukraine.
The price of oil was pushed down by the potential increase in the supply of Russian crude oil, which will be released into the market if Tehran can revive the nuclear agreement with global powers from 2015. If the sanctions are lifted, the Russian supply will increase by one million barrels per day, which represents one percent of the world demand. However, the prospects for concluding the agreement are unclear.
At the beginning of August, the OPEC+ group announced that it would increase the oil tariff by 100,000 barrels per day, which corresponds to roughly one-tenth of one percent of global consumption. At the same time, the group warned that due to insufficient investments in the pipe in the past years, it will be a problem to fully satisfy the growing demand from the fifth year.
Citing industry data, Reuters reported last week that oil production in OPEC rose 2.4 percent to 29.58 million barrels per day in August. This represents the highest level since April 2020.
OPEC wants to tighten price control
A surprising step on the part of OPEC, which was made in response to the pleas of US President Joe Biden, was to reduce the price of oil. For an oil-buying country, this is a worrying development. He has to deal with expensive oil and the prospect of an energy crisis in the winter.
The dream is meaningless in terms of volume. But it should send a signal that OPEC is returning to price surveillance, said Bill Farren-Price, head of macro oil and gas research at Enverus.
While the majority of businesswomen expected that OPEC and its allies would hit them hard, a leading producer of the coalition hinted at the pitots that they may be preparing to attack in this direction. The Saudi Minister of Energy, Prince Abdulaziz bin Salman, said a few weeks ago that the OPEC alliance is calling for cuts to stabilize excessive volatility on world markets.
Signals from the physical market indicate that the supply is tight and many OPEC countries are below the tariff level. New sanctions will then threaten exports from Russia. Moscow stated that it will stop supplying oil to countries that support the idea of limiting Russian energy prices due to the conflict in Ukraine.