Home » Oil dips ahead of OPEC+ production cut talks

Oil dips ahead of OPEC+ production cut talks

by archyde

The rise of the dollar was the main reason for the decline in the price of oil (AFP)

I retreated oil prices A very slight decline today, Wednesday, after rising more than three percent in the previous session, before OPEC+ producers meeting To discuss a significant reduction in crude production.

Dealers said that the dollar’s rise was the main reason for the slight decrease in prices, as it reduced demand from buyers who use other currencies.

Brent crude, the international benchmark, fell 22 cents, or 0.2 percent, to $91.58 a barrel at 04.27 GMT, after rising $2.94 in the previous session.

US West Texas Intermediate crude futures fell 29 cents, or 0.3 percent, to $86.23 a barrel, after rising $2.89 in the previous session.

An OPEC source told Reuters that the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, in the so-called OPEC+ grouping, will meet in Vienna later on Wednesday to discuss production cuts of up to 2 million barrels per day.

A cut of this size would be the largest production cut by OPEC+ since demand was hit by the Covid-19 pandemic in 2020.

Analysts (ANZ Research) said in a note that the agreement on the deep cuts “would send a strong message that the group is determined to support the market,” adding that this “will lead to a significant shortage in the market.”

Chris Beck, a member of Vitol’s executive committee and chairman of VTTI’s board, said on Wednesday he expects Brent crude to be close to $100 a barrel by the end of the year.

Beck added that the market value of Brent crude ranges between 80 and 100 dollars per barrel.

(Reuters, The New Arab)

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