OPEC Plus, which includes OPEC member countries and allies led by Russia, agreed on Monday to slightly reduce oil production to boost prices that have fallen due to fears of an economic slowdown. Crude producers will cut production by 100,000 barrels per day, which is equal to 0.1 percent of global demand, in October, and they also agreed that a meeting might be held at any time to adjust production policy before the next meeting scheduled for October 5. The decision effectively maintains the status quo while OPEC faces severe fluctuations in oil prices, affected by multiple factors in both directions. Matthew Holland, an analyst at Energy Aspects, an energy research firm, said: “OPEC Plus is concerned regarding long-term volatility in prices due to weak macroeconomic confidence, weak liquidity, renewed Chinese shutdowns (to combat Covid-19), as well as uncertainty regarding a possible agreement between the United States and Iran. and efforts to impose a ceiling on Russian oil prices. Saudi Arabia, the largest producer in the Organization of the Petroleum Exporting Countries, last month signaled the possibility of cutting production to address what it sees as an exaggerated decline in oil prices. Brent crude fell to regarding $96 a barrel from $120 in June, amid fears of an economic slowdown and recession in the West. The decline in the price of crude also came once morest the backdrop of the possibility of an increase in supplies thanks to the return of Iranian crude to the market, if Iran succeeded in reviving the 2015 nuclear agreement with world powers. Iran is expected to add 1 million barrels per day to global supply, if sanctions are eased, although prospects for a nuclear deal appeared more murky on Friday. However, there are signs from the physical market that supply is still limited, many OPEC countries are producing less than targeted, and new Western sanctions threaten Russian exports. Russia has said it will halt supplies to countries that support the idea of capping prices for Russian energy supplies in the midst of the military conflict in Ukraine. Russia has also continued to reduce gas shipments to Europe, which will likely lead to further price hikes.
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Oil rises two dollars before the OPEC + meeting .. and conflicting expectations about production
written by Alexandra Hartman Editor-in-Chief
Oil prices rose more than $2 a barrel on Monday, extending gains as investors awaited possible moves by OPEC+ producers to cut production and support prices at a meeting later in the day.
Brent crude futures rose $2.43, or 2.6 percent, to $95.45 a barrel by 0850 GMT, following rising 0.7 percent on Friday.
US West Texas Intermediate crude scored $89.08 a barrel, up $2.21, or 2.5 percent, following rising 0.3 percent in the previous session. US markets are closed for a public holiday, Monday.
Sources in OPEC + told Archyde.com that the group, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies, will discuss options, including reducing crude production by 100,000 barrels per day, during its meeting today.
On Sunday, the Wall Street Journal reported, citing unnamed people familiar with the matter, that Russia is not in favor of cutting oil production for now, and that OPEC+ is likely to maintain stable production when it meets on Monday.
Six sources in OPEC + said that the group is likely to keep oil production quotas unchanged for the month of October at a meeting, on Monday, however, some sources did not rule out a slight production cut to support prices, which fell due to fears of an economic slowdown.
The six sources said, on Sunday and Monday, that OPEC +, which includes member states of the Organization of the Petroleum Exporting Countries and allies including Russia, is expected to maintain current policies.
However, three of the sources said that the group might also consider reducing production by a small amount of 100,000 barrels per day.
(Archyde.com)
Russia is concerned about “OPEC Plus” plans to reduce oil production Energy and minerals
written by Alexandra Hartman Editor-in-Chief
Today, Sunday, the Wall Street Journal revealed Russian opposition to reducing oil production at the present time, suggesting that “OPEC Plus” will maintain its oil production level when it meets tomorrow, Monday.
Sources added to the newspaper, that Moscow is concerned that the production cut may send a message to oil buyers that the supply of crude oil exceeds global demand, reducing its influence with consuming countries, which still buy Russian oil at large discounts.
The sources emphasized that Russia has benefited from high oil prices since the Ukrainian invasion, but that Moscow is more concerned regarding maintaining its influence in negotiations with Asian buyers, who have already bought its crude, following the Europeans and the United States began to avoid it this year.
Last week, the Group of Seven launched a plan to ban the insurance and financing of shipments of Russian oil and petroleum products, unless they are sold under a specified price cap, and Russia threatened to stop supplying oil and gas to countries participating in the price cap scheme.
In contrast, Saudi Arabia, one of the world’s largest oil producers, has floated the idea that the coalition might consider cutting production, an idea supported by members of the organization such as the Republic of Congo, Sudan and Equatorial Guinea, because they pump more than global demand for oil, and often leads to a reduction in production. OPEC Plus production will raise prices, which is what these countries want to achieve significant gains.
“OPEC” is considering fixing or reducing oil production next week
written by Alexandra Hartman Editor-in-Chief
Ahead of the Organization of Petroleum Exporting Countries’ meeting in “OPEC” next Monday, sources say that the bloc will keep oil production quotas as they are or reduce production next month to support the decline in prices.
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OPEC countries will meet next Monday to decide whether to keep production as it is or reduce it
Three sources in “OPEC +” said that the bloc is likely to keep oil production quotas, unchanged in October, during a meeting for them next Monday, but some sources did not rule out reducing production, to support prices that fell from very high levels. This year.
And on Thursday, a document revealed that The joint technical committee of “OPEC +” It expects the deficit in the oil market to widen to 1.8 million barrels per day, in the fourth quarter of 2023.
The Organization of the Petroleum Exporting Countries (OPEC) and allies, including Russia, are meeting in what is known as “OPEC”, at a time when demand is facing headwinds, and supplies may be boosted by the return of Iranian crude to the market, if Tehran concludes an agreement with world powers.
Brent crude, the benchmark, fell to around $95 a barrel from $120 in June, amid fears of an economic slowdown and recession in the West.
Iran is expected to add 1 million barrels per day to supplies, or 1% of global demand, if sanctions are eased.
Saudi Arabia, the largest producer in the “OPEC”, indicated in August “the possibility of reducing production to achieve balance in the market.”
Data from the physical market indicates that supply is still tight, with many OPEC countries producing less than their targets, while new Western sanctions threaten Russian exports.
Russia reiterated on Friday that it would stop supplying oil to countries that support the idea of setting a price ceiling for its energy supplies amid the Ukraine war.
Three other OPEC+ sources said the September 5th meeting was unlikely to cut production in October, citing factors such as tight supply and the political reaction to such a move at a time when energy prices are rising.
But several sources in “OPEC +” said that the outcome appears to be uncertain, and that ministers may consult during this weekend.
At its previous meeting, “OPEC +” agreed to increase the target level of production by 100,000 barrels per day for the month of September, following Standard discounts canceled It amounted to regarding 10 million barrels per day, which it had agreed to in 2020, to help counter the impact of the Corona pandemic.