Oil price gains as markets anticipate OPEC crude cut
Brent and US crude (WTI) were both trading higher, extending Friday’s 4% gain, following weakness earlier last week which saw oil prices fall 20% in two months.
The latest gains have been prompted by reports that OPEC+ is considering extending supply cuts further into next year when it meets on 26 November. Since late 2022, Saudi Arabia, Russia, and other members of OPEC+ have already pledged total oil output cuts of 5.16 million barrels per day, or about 5% of daily global demand. IGTV’s Angela Barnes has the latest.
(AI Video Summary)
Oil prices on the rise
Oil prices have been increasing lately after a period of weakness. Last week, the prices of both WTI (also known as US Light crude) and Brent crude dropped by 20% over two months. However, today the prices are trading higher, with Brent up 0.77% at around $81.00 a barrel and WTI up 0.84% at $76.00 a barrel. These gains are due to reports that OPEC Plus (Organization of the Petroleum Exporting Countries), a group consisting of Saudi Arabia, Russia, and other member countries, is considering extending supply cuts into next year. This decision is expected to be announced on 26 November.
OPEC Plus oil supply cuts
Since late 2022, OPEC Plus had already committed to reducing oil output by 5.16 million barrels per day, which is about 5% of the global demand. By extending this supply cut, it is hoped that oil prices will stabilise and the recent decline will be controlled. Additionally, the US weekly oil rig count increased by 2 to reach 618, while the number of oil rigs in operation rose by 6 to reach 500.
Overall, the recent rise in oil prices is due to the anticipation of extended supply cuts by OPEC Plus. The market was concerned about the drop in prices over the past two months, but this news has brought about positivity among investors. They are eagerly waiting for the upcoming OPEC Plus meeting to get more updates.
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