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Oil maintains its bullish streak and approaches $90 due to OPEC+ cut fears

Oil maintains its bullish streak and approaches $90 due to OPEC+ cut fears

The main members of the Organization of Petroleum Exporting Countries and their allies (OPEC+) They have started discussing an oil production cut when they meet on October 5, two sources in the group told Reuters, anticipating that a cut is very likely, although they did not specify the volumes.

The expectation is that Russia propose that the OPEC+ cut pumping by about 1 million barrels per day (bpd). The European Union was shown this Wednesday in favor of the application of caps on Russian oil, within the framework of a package of sanction measures for the Eurasian giant.

It is added that Hurricane Ian led to a reduction in the supply of barrels obtained from the Gulf of Mexico since two of the main producers in the area, BP and Chevron, evacuated their offshore plants. The trade phenomenon of a price support. Until Wednesday, the region had reduced its production in 157,706 barrels per dayaccording to the Office of Safety and Environmental Compliance.

Both of them Benchmark indices had rallied in the previous two sessions from nine-month lows hit earlier in the week, fueled by a temporary drop in the dollar index and a larger-than-expected drawdown in US fuel inventories.

The dollar index rose again on Thursday, after falling the day before, dampening investors’ risk appetite and stoking recession fears, sending both crude contracts lower earlier in the session.

Source: Ambito

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