Crude oil prices rose about 1.5% during trading today, Tuesday 27 September (2022), recovering from the 9-month low recorded the previous day.
This comes among the signs that the alliance OPEC + It could resort to production cuts to avoid a further drop in prices.
Crude Oil Prices Today
By 07:55 GMT (10:55 Mecca time), the futures price ofBrent crude The benchmark – delivery in November – 1.39%, registering 85.23 dollars per barrel.
The price of futures contracts has increased toWest Texas intermediate crude – November delivery – 1.49%, at $ 77.85 per barrel, according to data seen by the Specialized Energy Platform.
she was Prices of crude oil Yesterday, Monday, September 26, it closed its trading down around 2.5%, after a volatile session, to record the lowest level since January 2022.
dollar price
On Tuesday, the greenback retreated from its 20-year highs hit the day before, providing some relief for the oil market.
In the previous two trading sessions, Brent crude fell 7.1%, while WTI fell 8.1%, under the double pressure of a stronger dollar making US currency-denominated crude more expensive to buyers using other currencies and growing fears that higher interest rates could lead to higher interest rates. A recession will lead to a downsizing fuel demand.
The moves of OPEC
Officials from major manufacturers reacted to the last few days of decline by suggesting that they could take steps to keep prices stable.
He said Iraqi oil minister Ihsan Abdul-Jabbar said on Monday that the Organization of the Petroleum Exporting Countries (OPEC)OPEC) and allies including Russia, known as OPEC +, monitor the situation in crude oil prices and want to maintain balance on the markets.
He added in an interview on Iraqi television: “We don’t want a sharp rise in the price of oil or a crash.”
Analysts confirmed that additional sales in the oil markets It could lead to OPEC + intervention to support prices by collectively reducing its production.
OPEC + production
“If we are to see cuts, they will need to be slightly larger than the 100,000 barrels per day agreed at the last meeting to have a significant impact on the market,” ING Economics analysts said in a press release.
OPEC + has increased production this year after record cuts in 2020 due to the destruction of demand caused by the Corona pandemic, however, a number of OPEC countries have failed to meet planned increases in recent months. of production, undermining the effectiveness of any announcement of production cuts, it was said. Reuters.
Add the noise caused by Russo-Ukrainian War to the nervous market, due to the uncertainty over the maximum price ceiling envisaged by the EU for Russian oil exports, which is expected to start in December.
Oil price forecast
“We expect to see oil prices Crude oil has rebounded by around $ 80 per barrel for WTI, while for Brent crude oil appears to be rebounding by around $ 87 per barrel. “
The expected arrival of Hurricane Ian caused British oil company BP and Chevron to stop production on Monday at offshore oil rigs in the Gulf of Mexico, the largest offshore production area in the United States.
The Category 2 storm occurred in the Caribbean and is expected to become a major hurricane in a couple of days.
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