Saudi Arabia and other OPEC members may increase production amid an imminent oil embargo from Russia, media said.
World prices for reference grades of oil lost more than 5% in price against the background of a possible increase in the production of raw materials by OPEC countries. This was confirmed by the trading data on Monday, November 21.
Thus, the futures price for Brent crude oil for January delivery on the London ICE Futures exchange fell by $4.77 (-5.44%) to $82.85 per barrel.
Accordingly, futures for WTI crude oil for December delivery on the New York Mercantile Exchange fell by $4.33 (-5.41%) to $75.78 per barrel.
Prices for the “black gold” began to fall after the publication of an article in The Wall Street Journal that Saudi Arabia and other OPEC member countries were discussing increasing production by 500,000 barrels per day.
The publication said it would help them overcome differences with US President Joe Biden’s administration and keep oil flowing amid attempts by Western countries to rein in Russia’s oil industry.
The decision could be made at the OPEC+ meeting on December 4 – the day before the EU imposes an embargo on Russian oil, and G7 countries plan to impose a price cap on Russian oil, potentially withdrawing its supply from the market.
It will be remembered that at the end of last week, oil also fell significantly. At the time, it was due to investors’ fears regarding the further worsening of the coronavirus situation in China and the increase in rates in the United States.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.