Exporters have made a decision. The price of crude oil has changed

OPEC+ countries decided to increase restrictions on oil extraction – determined by Reuters. Her reports are also confirmed by Bloomberg. According to journalists, Saudi Arabia, which had voluntarily reduced its crude oil production by 1 million barrels a day since July, was pressuring other exporters and allies to join the restrictions. The remaining members are also to reduce production by 1 million barrels. This means that the drop in production may reach a total of approximately 2 million barrels per day.

The rest of the article is below the video

OPEC+ countries, according to analysts cited by the agency, are afraid of a surplus on the market. Falling oil prices may also be a reason for the decision. Since the maximum reached in September, the price of the raw material has decreased by approximately 10%.

The decision will most likely benefit producers. Thursday afternoon crude oil prices on the London Stock Exchange increased however, by 1.4 percent – to the level of $84.24 per barrel. The increases started even before the meeting – the market was afraid of further restrictions. Experts also noted that oil had become cheaper since the beginning of the week.

One of Reuters’ sources says that Russia is one of the countries that limits oil production the most. Production cuts are expected to reach 500,000. barrels per day. According to Bloomberg reports, it is about 300,000. barrels.

Giovanni Staunovo, an analyst at UBS Group AG, in a comment for the agency, said that the actions of the OPEC+ alliance are dictated by the fear of reduced demand in early 2024. “If the reports are confirmed, it will mean that OPEC+ wants to maintain control over crude oil,” he said.

In a slightly longer term, the OPEC+ decision may affect fuel prices at gas stations. It will also have an indirect negative impact on the decline in inflation.