Despite this scenario, this Tuesday the Brent from the north came to break the ceiling of US $ 90 a barrel after expectations grew that the Organization of the Petroleum Exporting Countries (OPEC) would cut production to prevent falling prices. The expectation was that the cut in production would be more than one million barrels per day, but The thirteen members and their ten partners approved this Wednesday a strong reduction of more than two million barrels per day starting in November, the Iranian governor before OPEC Amir Hossein Zamaninia told the press.
I know adds that on December 5 the maximum price caps proposed by the G7 will come into force about him russian oil. Russia had already anticipated that, if the measure progressed, it would proceed to a total suspension of supplies, including all energy supplies, whether oil or gas. In parallel, a embargo to all the Russian oil that leaves by ship, but not to those that are sold through pipelines. The measures were promoted by the organization of countries to reduce Russian financing, but add pressure to supply.
The latter is complemented by the fact that Russia decided to suspend the sale of energy to Europe, in particular ordering the closure of its main gas pipeline to the continent, the Nord Stream I, which mainly supplied Germany, highly dependent on Russian gas. Last week the leaks in the Nord Stream II, which was not working either.
The forecast of the power shortage during winter made the old continent encourage its energy saving and gas subsidy measures. Europe exceeded its goal of recharging the gas stores for the winter: on the European Union they are 89% full and in the UK they are 94%. It is a figure higher than the objective of 80% recharge of warehouses approved by the European Commission. However, the reserves are not enough to guarantee the necessary supply to get through the European winter, nor are they enough to supplant Russian imports. According to forecasts by the International Energy Agency, Europe will reduce its gas consumption by 10%.
The United States fuel reserves, created to deal with exceptional situations, such as climatic catastrophes or disruptions in supply chains, were used from the beginning of the Russian invasion of Ukraine to moderate the price of oil. As a result of this phenomenon, reserves are at exceptionally low levels, so it is expected that the White House resolve to limit the exports of this commodity, which, according to the business chambers, could add pressure on prices.
Source: Ambito
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