After the increases in recent months, the major oil nations in the OPEC+ alliance are again slightly reducing their production target. The combined daily production for October will be reduced by 100,000 barrels (159 liters each), it was said yesterday, Monday, after an online meeting of oil ministers from around 20 countries.
This reverses the recent expansion in production by OPEC+, which is dominated by Saudi Arabia and Russia. The group pointed to falling oil prices due to fears of a global recession.
In view of the supply cuts that were in the room and finally decided, oil prices rose briefly yesterday. In the afternoon, a barrel of North Sea Brent cost $96.64. That was $3.62 more than on Friday. The US variety West Texas Intermediate (WTI) gained $3.12 to $89.99.
The price premiums follow what were in some cases significant discounts in the past week. The main reasons for this are the gloomy economic prospects and the correspondingly weak expected demand for oil, petrol and diesel. In addition, the central banks’ fight against inflation is weighing on oil prices, since the higher interest rates in many places are depressing the mood on the financial markets.
Source: Nachrichten
