Oil prices jump ahead of OPEC+ meeting
The cost of contracts for the supply of Brent oil with the execution in December rose during trading by about 4.5%, follows from the data of the Intercontinental Exchange. The price at the peak rose to $88.99 per barrel, while on Friday trading ended at $85.14 per barrel.
American WTI crude rose by about 4.6% to $83.14 per barrel, according to trading data.
Oil rises in price ahead of the OPEC + meeting, which will be held on October 5 at the OPEC headquarters in Vienna. Countries are to agree on oil production volumes in November. This will be the first face-to-face meeting of delegations in more than two years, writes Bloomberg.
The cartel could negotiate a production cut of more than 1 million barrels per day, the biggest production cut since the start of the coronavirus pandemic, agency sources said. Countries are worried about the rapid slowdown in the global economy in the face of tightening monetary policy by the largest central banks, wrote Bloomberg.
“OPEC+ is very focused on rising US rates and their impact on emerging market demand. Consequently, they want to preempt any possible surpluses in the global market,” Amrita Sen, senior oil analyst at research firm Energy Aspects, told Bloomberg.
However, a sharp reduction in production could be another shock to the global economy, which is already suffering from rising energy prices, writes Bloomberg.
“Only OPEC+ can wake up oil prices from their current slumber,” said Victor Catona, an analyst at research firm Kpler.