Yesterday, the OPEC+ monitoring committee agreed to reduce oil production by 2 million b/d from November.
The period of execution of this decision is not specified. Such actions, as stated, are aimed at curbing the prices fall on the world market against the backdrop of investors’ fears about a further demand reduction.
The price of Brent oil on the London ICE exchange rose above $93 per barrel for the first time since September 21.
🇺🇸 On the eve of the OPEC + meeting, the administration of US President Joe Biden tried to dissuade countries from making such decision, arguing that there is simply no need in the current economic situation. United States was described decision by the OPEC+ countries to decrease oil production as a «total catastrophe» and «an act of hostility.»
🇷🇺⚡️At the same time, Deputy Prime Minister of the Russian Federation Alexander Novak said that the introduction of a price ceiling for Russian oil, for which the EU is desperately fighting, could lead to a temporary reduction in its production in the Russian Federation. 🇪🇺❗️Meanwhile, today the European Union approved the eighth package of sanctions against Russia, including a ceiling for oil prices, the European Commission announced.
🇸🇦🇬🇧 The Financial Times and Reuters, citing their sources, wrote on the eve of the OPEC+ meeting that it is Russia and Saudi Arabia that will insist on reduction of production by 1-2 million barrels per day or more. The Kingdom’s energy minister at an OPEC+ press conference called this a complete lie.
🗞»You talked that Russia is doing this and that. But in fact, the day your story came out, I still did not talk with anyone from Russia. Then you wrote again that Saudi Arabia and Russia, blah blah blah, are trying agree a price of $100. But this is not true,» he was indignant.
🇺🇸 The White House, in turn, did not stand aside and, in response to such actions by the Organization of the Petroleum Exporting Countries, expressed disappointment with the «short-sighted» decision of OPEC + and announced the release of an additional 10 million barrels from the Washington strategic oil reserve to the market in November. Which is turned out to be pretty empty in recent months.
Meantime, there is a month left before the elections to the Senate.
