Oil prices rose by more than 2% on Tuesday, due to the possibility that OPEC+ will extend or intensify supply cuts, a drop in Kazakh oil production caused by the storm and a weakening of the US dollar, reports Reuters, informs News.ro.
Brent crude futures rose $1.88, or 2.4%, to $81.86 a barrel.
The price of US West Texas Intermediate (WTI) crude oil gained $1.84, or 2.5%, to $76.70 a barrel.
OPEC+, which brings together the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, is due to hold an online ministerial meeting on Thursday to discuss production targets for 2024.
Talks will be difficult and a renewal of the previous agreement is likely, rather than deeper production cuts, four OPEC+ sources said.
Oil markets crashed last week
The market tumbled last week when OPEC+ postponed the date originally set for its meeting to resolve differences over African producers’ production targets.
“Even with the existing disagreement, the possibility of keeping the agreement as it is for another month remains high,” said Phil Flynn, an analyst at Price Futures Group in Chicago.
A possible compromise could involve Angola and Nigeria accepting reduced output targets for several months if the other countries’ targets were also cut, Commerzbank’s Carsten Fritsch said.
According to the delegates, Saudi Arabia is demanding lower production quotas from the other OPEC+ countries. While Kuwait has signaled it would be willing to do so, some countries appear to oppose any such move.
The UAE is likely to oppose this, given that its 2024 production target was raised at its urging when OPEC+ met earlier in early June, he added.
Oil prices also found support from a weak dollar, an expected decline in US crude inventories and lower production in Kazakhstan. Kazakhstan’s largest oil fields have cut their combined daily oil production by 56%.
2023-11-29 13:40:59
#Big #upheaval #international #markets #oil #prices #rumble #dollar #weakens #Source #news
