AA / Istanbul
UBS bank said in a research note on Tuesday that the absence of any initiative from the OPEC+ alliance, in the coming period, will lead to a significant decline in crude oil prices.
Bank analysts said OPEC+’s announcement of a cut in crude oil production at the next meeting would halt the decline in global crude prices.
Brent oil prices hit $84 a barrel in today’s trading, hitting their lowest level since last January, while the year’s highest price reached $138 at the date of March 8.
On September 5, the OPEC + alliance decided to cut crude oil production by 100,000 barrels per day, next October, in the first scheduled reduction in almost a year.
The decision came at a time when crude oil prices have been swinging wildly since the end of August last year, amid fears of a possible recession in the US economy, alongside a slowing economy. Chinese.
According to the UBS bank note: “The OPEC+ alliance may have to announce a production cut of at least half a million barrels per day in the coming days“.
The next ministerial meeting of OPEC and non-OPEC countries is scheduled for October 5, 2022.
According to UBS, fears of a recession in the United States and in the world economy could lead to a reduction in the demand for crude oil and its derivatives, and consequently, the return to a surplus situation such as saw years ago.
* Translated from Arabic by Mounir Bennour.
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