Brent and US crude futures rose more than 2.5% in mid-day trading on Monday, gaining more than $2 a barrel, as investors awaited further OPEC+ supply cuts to be announced following a meeting of member countries early next week , reports Reuters. Russia and Saudi Arabia set in motion the plan to voluntarily reduce production, precisely to increase oil prices, informs News.ro.
Read also: The effects of the big plan devised by Putin and Saudi Arabia are beginning to be felt
Brent crude futures rose $2.19 to $82.80 a barrel.
The price of US West Texas Intermediate oil increased by 2.13 dollars or by 2.81%, to 78.02 dollars per barrel.
The December WTI contract expired on Monday.
More active January futures gained $2.39 to $78.34, up 3.02%.
Both contracts ended Friday trading up 4 percent after three OPEC+ sources told Reuters the producer group, which comprises the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, was to consider whether to make further supply cuts when it meets on November 26.
The Saudis have greatly reduced production
“The OPEC comment signaling new cuts came as a signal. I would expect any reduction to be modest. The Saudis have cut production so much they don’t know what else they can do,” said John Kilduff, partner at Again Capital LLC.
Oil prices have fallen by almost 20% since the end of September.
Traders are also watching for signs of demand destruction from a possible US recession in 2024 and are also weighing in on a warning of possible deflation from major retailer Walmart.
But traders are waiting for the OPEC+ meeting.
2023-11-21 06:21:48
#Putins #Saudi #Arabias #Grand #Plan #Set #Motion #Big #Turmoil #International #Markets #Source #News
