Oil prices for the benchmark brands – Brent and WTI – continue to rise after an active rise during trading on November 17. Bloomberg explains the rise in oil prices to the upcoming meeting of representatives of OPEC+ countries, which is scheduled for November 26.
According to trading data on the London ICE Futures exchange, the price of January futures for Brent at 10:05 Moscow time is $81.25 per barrel. Compared to the closing indicator of the previous session, the price increased by 0.79%. During trading on November 17, the price of January futures for Brent rose by 4.1%, to $80.61 per barrel. The price of a barrel of WTI was at $76.68 (-0.84%). At the end of the last session, they grew by 4%, to $75.89 per barrel.
Experts surveyed by Bloomberg note that oil prices began to rise on the eve of the OPEC+ conference. “We continue to expect Saudi Arabia and Russia to continue their additional, voluntary production cuts in early 2024. However, it is less clear whether the wider group of OPEC+ countries will agree to further reductions,” the agency quotes Warren Patterson, head of commodity strategy at ING Groep NV.
The International Energy Agency (IEA) predicted that the extension of voluntary oil production cuts by Russia and Saudi Arabia until the end of the year as part of OPEC+ would leave the oil market in a state of “significant deficit” until 2023. IEA analysts noted that OPEC+ will produce 900 thousand barrels per day less than demand.
Read more in the Kommersant article. “Oil overflows through the ceiling”.