Oil fell after OPEC+ announced production cuts

Futures for “black gold” of various brands began to decline compared to last Friday.

Oil prices fell on Tuesday, September 6, compared to the previous session. The OPEC+ agreement to cut production by 100,000 barrels per day in October is seen as a symbolic move to support prices after the recent market slump. This was reported by Reuters.

Futures for Brent crude fell 0.9% to $94.93 a barrel. US WTI crude futures rose 2.0% to $88.57 a barrel from Friday’s close.

The Organization of the Petroleum Exporting Countries and allies led by Russia, grouped under the name OPEC+, decided to cancel a 100,000 bpd increase in September after top producer Saudi Arabia and other members worried about falling prices since June, despite limited supply.

Analysts, who do not expect a deal even though Saudi Arabia has said it wants to support prices, say the cuts are mostly symbolic and have limited impact on actual supply because OPEC+ produces less than those target.

However, the move is important in signal terms because it “indicates that OPEC+ is watching demand very closely and trying to manage supply to keep oil prices at a minimum.”

Other factors affecting the market include a weaker outlook for oil demand due to the re-imposition of lockdowns on China’s shares, as well as an agreement to cap the price of exports. of Russian oil, said Tina Teng, an analyst at CMC Markets.

In response to the cap on oil prices from Russia, Moscow will supply more to Asia, Energy Minister Nikolai Shulginov told reporters at the Eastern Economic Forum in Vladivostok.

Remember that in the Russian Federation they threatened not to supply oil to some countries and said that the idea to limit the price of Russian oil is completely absurd.

The G7 introduced a ceiling on the price of Russian oil. What does this mean

News from Correspondent.net on Telegram. Subscribe to our channel Athletistic