Wednesday , March 29 2023

Oil is on the back of expectations of OPEC supply cuts


Jordan 24 –

Oil prices rose on Friday against expectations of a reduction in supply from the Organization of Petroleum Exporting Countries (OPEC), although it was affected by a record rise in US production.

Brent's gross futures were $ 67.49 / barrel by 0747 GMT, up 87 cents, or 1.3 percent, as compared to the previous one.

US WTI futures rose 50 cents, or 0.9 percent, to $ 56.96 per barrel.

Prices were mainly supported by expectations that OPEC will soon cut output due to fears that the downward trend in gross price will return, as it did in 2014, under the supply's weighting.

Saudi Arabia, leading the de facto organization, wants OPEC to cut deliveries by about 1.4 million bpd, equivalent to about 1.5% of global supplies, sources said this week.

Saudi Arabia would be willing to share Russia, as it happened when the offer was reduced jointly since January 2017, although Russia has not yet committed to renewing any joint action.

While OPEC is considering cutting consumption, US crude oil production has reached a record high of 11.7 million bpd last week, according to data released on Thursday by the US Energy Information Administration.

US production has increased by about 25% since the beginning of this year.

Record production in the US means that US crude oil stocks recorded the highest weekly gain in almost two years.

Gross inventory increased by 10.3 million barrels in the week ending November 9 at 442.1 million barrels, the highest level since early December 2017. (Reuters)

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