Oil prices rose on Friday, supported by the decline in the US dollar and the possibility of the OPEC + group agreeing to cut crude production when it meets on the fifth of October. Brent crude futures for November rose 95 cents, or 1.07 percent, to $89.44 a barrel. December futures rose 81 cents to $87.99 a barrel.
US West Texas Intermediate crude futures also rose 72 cents, or 0.89 percent, to $81.95 a barrel. Oil prices rose, supported by the dollar’s decline earlier in the week from its highest levels in 20 years. The dollar’s decline makes US-denominated oil cheaper for holders of other currencies, improving demand.
Analysts also expect the volume of purchases to increase as Russia prepares to annex four Ukrainian regions to it, on Friday, in a move that could prompt Washington to tighten sanctions on Moscow.
Sources in the OPEC + alliance told Archyde.com that the consultations of the producing countries regarding reducing production levels at the meeting scheduled for the fifth of October became focused on reducing between 500 thousand and one million barrels per day, with the aim of supporting the market.
Earlier this week, a source familiar with the Russian situation said that Moscow might propose a cut of up to one million barrels per day, while a source in the Organization of the Petroleum Exporting Countries (OPEC) expected the potential cut to be close to 500,000 barrels per day. Talks are expected to continue even before the meeting.
“Maybe it will become clearer over the weekend or on Monday,” an OPEC+ source said. Consultations usually end right before the meeting.
And OPEC +, which includes the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC allies including Russia, had previously agreed to cut the production target by 100,000 barrels per day at their meeting in September, the first reduction since 2020.
The meeting next week comes amid sharp market fluctuations and a significant drop in oil prices from levels recorded in March, which were the highest in several years.
“The odds are that OPEC + will cut its production … the level of ninety dollars is a non-negotiable matter on the part of the leaders of OPEC +, and therefore they will move to defend this minimum,” said Stephen Brennock of (BVM) oil markets brokerage. for the price.”
Saudi Arabia, the largest producer in the Organization of the Petroleum Exporting Countries, had indicated in August that it could cut production to meet market volatility. (agencies)