Houston. Oil prices fell more than 3 percent on Thursday after the Financial Times reported that Saudi Arabia, the world’s largest exporter, will give up its $100 price target in preparation for raising production, along with members of OPEC and its allies in December.
The European reference contract, Brent, fell $1.86 (2.53 percent) to $71.60 a barrel. The US West Texas Intermediate (WTI) fell 2.02 dollars (2.90 percent) to 67.67 dollars per barrel.
The Mexican export mix lost 2.35 dollars (3.57 percent) to 63.37 dollars per barrel, according to the price published by Petróleos Mexicanos (Pemex).
Saudi Arabia is set to abandon its unofficial target of a price of $100 a barrel for crude oil as it prepares to increase production, the Financial Times reported on Thursday, citing people familiar with the matter.
In addition, two OPEC+ sources told Reuters on Thursday that the group is willing to press ahead with an increase in oil production in December because its impact will be small, should a plan for some members to make more come to fruition. cuts to compensate for overproduction in September and subsequent months.
“They are overreacting to the FT news,” said Phil Flynn, senior analyst at Price Futures Group.
The Organization of the Petroleum Exporting Countries, along with the group’s allies including Russia, known collectively as OPEC+, have been cutting oil production to support prices.
However, prices have fallen almost 6 percent so far this year, in a context of increasing supply from other producers, especially the United States, as well as weak demand growth in China.
“The prospect of more supply from Libya and Saudi Arabia has been the main driver of the latest weakness (lower prices),” said Ole Hansen, an analyst at Saxo Bank.
On Wednesday, a United Nations statement said delegates from Libya’s divided eastern and western regions had agreed on the process of appointing a central bank governor, a step that could help resolve the crisis over revenue control. oil tankers from the country that has interrupted exports.
Hurricane Helene paralyzes about 25% of production in the Gulf of Mexico
About 25 percent of crude oil production and 20 percent of natural gas production in the U.S. Gulf of Mexico was suspended in response to Hurricane Helene, the Office of Safety and Environmental Compliance said Thursday.
Energy producers had shut down production of 441,923 barrels per day of oil and nearly 363.4 million cubic feet of natural gas from Gulf waters, the office said.
Driven by the warm waters of the Gulf of Mexico, Helene intensified into a Category 2 hurricane early Thursday, packing sustained winds of 175 kilometers per hour as it moved toward Florida.
(With information from the editorial staff)
#Oil #prices #fall #due #prospect #supply #OPEC
– 2024-10-04 08:01:26
