All eyes on Opec+. The group of oil producing countries, OPEC, was expanded by 10 countries and announced in October that it would reduce production by 2 million barrels per day. The decision was criticized by the US government as being “narrow-minded” and “a mistake”.
According to the powerful oil association and Russia, this should take effect in December. “Time will tell by how much daily production will actually decrease,” Commerzbank’s commodities experts say.
Restriction may be appropriate. Because the states organized within the Opec+ oil union are apparently rethinking their decisions that underestimate the West. As the Wall Street Journal (WSJ) reports, Saudi Arabia and other OPEC producers are now discussing increasing production. This would make gasoline cheaper in Europe and the US, easing the impact of Russia’s energy sanctions.
Sources for the business newspaper are delegates to the funding meeting, but names are not mentioned. Specifically, the WSJ writes that the goal is to increase oil production by an average of 500,000 barrels per day.
Are oil prices lagging?
The next Opec+ meeting will be held on December 4. However, media reports are already causing a minor jolt in the oil market. Oil prices fell on Monday, continuing their decline from last week. A barrel (159 liters) of North Sea Brent oil was $82.95 on Monday afternoon. That was $4.67 down from Friday.
When it comes to prices on pumps, the increase in dispense volume may provide some relief. From a political point of view, the WSJ says that the recent political gap between the United States and Saudi Arabia can be bridged to some extent. (What)