Oil price rises due to predictions of OPEC production cuts

Crude oil futures closed up more than 5% on Monday (Oct. 3), responding to forecasts that OPEC and OPEC+ countries will cut oil production in a big way at their meeting on Wednesday.

  • WTI crude futures were up $4.14, or 5.2%, at $83.63 a barrel.
  • BRENT crude futures were up $3.72, or 4.4%, at $88.86 a barrel.

OPEC and OPEC+ will hold a production policy meeting in Vienna on Wednesday, October 5. The meeting is expected to decide to cut production for the second month in a row to support oil prices in the market.

OPEC is considering cutting oil production for November by more than 1 million barrels per day. This would be the largest production cut since 2020, or since COVID-19 began to circulate.

At the last OPEC and OPEC+ meeting on September 6, a production cut of 100,000 barrels per day for October was agreed. This is the first production cut in more than a year to support world oil prices.

In addition to the meeting, investors are also waiting for the reports on U.S. crude oil inventories to be released by the U.S. Energy Information Administration (EIA).

The Spot Market is Open

Tuesday, October 4, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
11.00

83.89

+0.26

+0.31%

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