Oil Hesitates: Market Awaits OPEC+ Member Cuts Extension | Top Barrel Price Community Website

2023-09-04 12:06:04
London: Crude prices hesitated between rising and falling on Monday, the market being on the lookout for potential announcements from Saudi Arabia and Russia on extensions of their cuts in production and oil exports. Around 10:45 GMT (12:45 CET), a barrel of Brent BRENT Brent or North Sea crude is a variation of crude oil serving as a benchmark in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It has become the first international standard for setting oil prices. from the North Sea, for delivery in November, took 0.19% to 88.72 dollars.

Its American equivalent, the barrel of West Texas Intermediate (WTI WTI West Texas Intermediate (WTI), also known as Texas Light Sweet, is a variation of crude oil that serves as a standard in pricing crude oil and as a commodity for oil futures contracts with the Nymex (New York Mercantile Exchange). ), the stock exchange specializing in energy.), for October delivery, gained 0.16% to $85.69.

The market is waiting for “Saudi Arabia to announce the extension to October of its voluntary production cut of one million barrels per day and for Russia to jointly announce the continuation of restrictions on its oil exports”, comment DNB analysts .

The de facto leader of the Organization of the Petroleum Exporting Countries and their allies (OPEC+), Saudi Arabia, had initiated this voluntary production cut in July, extended for the moment until September. Russia had joined the movement, also reducing its export volumes until September.

Last week, Russian Deputy Prime Minister Alexander Novak assured that alliance members and Russia had agreed on further production cuts, saying the “main parameters” would be announced within the week.

“OPEC+ cuts, lower oil exports, sustained growth in oil demand amid economic concerns and falling inventories have pushed oil prices higher” in recent days, explain DNB analysts.

The Brent BRENT Brent or North Sea crude is a variation of crude oil serving as a benchmark in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It has become the first international standard for setting oil prices. touched its highest price since January on Friday, and the WTI WTI West Texas Intermediate (WTI), also known as Texas Light Sweet, is a variation of crude oil that serves as a standard in pricing crude oil and as a commodity for oil futures contracts with the Nymex (New York Mercantile Exchange). ), the stock exchange specializing in energy. peaked on Monday at its highest price since November.

Production and export levels from OPEC+ countries are all the more important to prices as U.S. shale oil production slows, SEB analysts note, leaving them with more market share despite current discounts.