Oil rose following he said alliance “OPEC+” He is considering lowering the production limit by up to two million barrels per day, double what was previously expected.
West Texas Intermediate crude was trading near $86 a barrel, having earlier jumped as much as 4%. The OPEC decision might lead to the largest reduction by the alliance since the deep cuts that occurred at the beginning of the pandemic, but the actual impact on global oil supplies may be much less, given that many members are already pumping far less than their quotas.
“Potential cuts further from 1 million barrels per day to 2 million barrels would mean a more hawkish approach,” said Stacey Morris, head of energy research at Alerian VettaFi. “That might signal greater concern regarding demand and the health of the global economy.”
“Morris” said that the new figure raises the potential risks at the “OPEC + +” meeting, scheduled for Wednesday, adding that a smaller cut may be disappointing. Expectations of production cuts boosted prices, with West Texas Intermediate crude rising more than 5% on Monday in its biggest advance since July.
Simultaneously, the G7 countries will announce a ceiling on the price of Russian oil “significantly before December 5”, the date on which they will enter EU sanctions into effect, according to a US Treasury official. Although the cap is designed to keep Russian oil flowing, Moscow has threatened to cut off crude supplies to any country that adheres to a price cap.
