While the A barrel of West Texas Intermediate (WTI) also for November delivery fell 1.1% to $81.23 in New York.
The day was marked by great volatility and prices remained on the rise until minutes before closing. “With equity markets crashing, crude oil prices were dragged down by pessimism” bags, summed up Kpler’s Matt Smith.
“The mood isn’t really the best,” the analyst emphasized. operators “they are very worried about the recession” which, if it occurs, could erode the demand for oil and refined products.
If the market did not fall further on Thursday it is, “perhaps”, because it expects a gesture from Opec+ “to support and stabilize prices” when it meets on October 5, Smith maintained.
OPEC’s alliance with another dozen producers outside the cartel “It will have to reduce its volumes between 500,000 and one million barrels per day to keep prices around 90 dollars per barrel” of Brent, estimated in a note Gary Ross, of Black Gold Investors, a range that is seconded by other analysts.
In addition, the strong dollar, whose advance on Thursday again penalized crude oil prices by making a barrel denominated in the US currency more expensive, “reinforced concerns within the cartel, and seems increasingly determined to defend high prices”advanced Quincy Krosby, of LPL Financial.
However, OPEC + was far from its production target of 3.58 million barrels in August, due to a lack of sufficient capacity.
Therefore, Smith points out, the OPEC+ decision would only have an impact if the production contraction is borne primarily by the members that meet their targets, mainly Saudi Arabia and the United Arab Emirates.
Source: Ambito
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