The outlook is marked by uncertainty, and expectations are now placed on the meeting that has been rescheduled for November 30.
The surprise postponement of the alliance’s ministerial meeting OPEC+ shakes the foundations of the markets tankers, triggering the collapse of crude oil prices. Anticipation was rising as the thirteen members of the Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, and its ten partners, led by Russia, prepared to establish the future of oil production.
Now, after the suspension of the meeting, without any explanation, adds Brent (-3.9%) and WTI (-4%), in a decrease of more than 4%. This sudden decision has generated uncertainty in the markets, especially due to the persistent bearish trend of the crude oil prices since the end of September, keeping Brent below the mark of $80.
Oil: the data analyzed by the market
The post-pandemic recovery in China, the world’s main importer of Petroleum, has been weaker than anticipated, while mixed signals from Europe and the United States have added to concerns about global demand. Despite the efforts of the OPEC+ for restricting production in recent months in order to boost prices, not a sustained increase has been achieved in these.
Analysts point to possible discrepancies between Riyadh and Moscow as one of the triggering factors of this situation. While the Saudi Minister of Energy attributes the drop in prices to speculators, the Russian Deputy Prime Minister, Alexander Novakhas expressed that current oil prices objectively reflect the current situation and are at an adequate level of balance in the market.
The outlook is marked by uncertainty, and expectations are now set on the meeting rescheduled for November 30, where the leaders of the OPEC+ discuss these issues in detail in an attempt to stabilize prices of crude oil in a volatile and unpredictable global market.
Source: Ambito
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