Oil prices fell in the early hours of Tuesday due to the OPEC+ agreement to cut production by 100,000 barrels per day in October. This was seen as a major symbolic move to prevent the recent market crash.
- Brent crude fell 33 cents, or 0.3%, to $95.44 a barrel.
- WTI crude futures rose to $89.13 a barrel Monday, up $2.26, or 2.6%, from Friday’s close. Monday is the U.S. Labor Day holiday.
The Organization of Petroleum Exporting Countries (OPEC) and OPEC+ have decided to reverse the 100,000 bpd increase in September. Leading Saudi producers and other members have expressed concern about the drop in prices since June despite tight supplies.
Analysts had not expected such an agreement. Saudi Arabia has said it wants to boost prices, but most of the cuts are symbolic because OPEC+ has not met its production targets.
An ANZ Research analyst said in a note, “This move shows that they are still serious about support prices. Although the cuts will have little impact on short-term changes in demand/supply.”
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Tuesday, September 6, 2022