The barrel of oil rises this Monday in a context in which producing countries announced cuts in production targets. Biden does not support the measure.
The prices ofthe oil soared on Monday after OPEC+’s surprise announcement to further cut production rocked markets, and crude posted its biggest daily rise in almost a year.
Thus, the London barrel, the Brent, is listed at $84.53 and registers a rise of US$4.64 (5.8%), after touching the highest level in a month at US$86.44, and crude oil West Texas Intermediate (WTI) operates at $80.23 a barrel, with an increase of US$4.56 (+6%), after reaching a maximum since the end of January.
This occurs after the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, rocked markets by announcing further cuts on Sunday to their production target of about 1.16 million barrels per day (bpd). The group, known as OPEC+, was expected to stick to its earlier decision to cut output by 2 million bpd through December at its monthly meeting on Monday.
Commitments raise the total volume of OPEC+ cuts to 3.66 million bpd, according to Reuters calculations, which is equivalent to 3.7% of world demand. And, as a result, Goldman Sachs lowered its end-2023 output forecast for OPEC+ by 1.1 million bpd and raised its Brent price forecasts to $95 and $100 a barrel for 2023 and 2024, respectively, it said. in a note.
Joe Biden criticized the move
The government of President Joe Biden said that the measure announced by the producers was inadvisable and some analysts questioned OPEC+’s justification for the additional production cut.
The decision means that OPEC+ is determined to act above those possible economic storm clouds that loom on the horizon, said Jorge León, senior vice president at consultancy Rystad Energy.
“These cuts may be signaling that OPEC+ believes there are enough recessionary indicators in the market… (and) they will further tighten the oil market for the rest of the year and could push prices above $100 a barrel.” , he pointed.
Let’s remember that Brent fell last month to $70 a barrelthe lowest level in 15 months, on fears that the global banking crisis and rising interest rates will affect demand, despite lower OPEC production in March due to the interruption of some exports from Iraq .
Source: Ambito
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