This Monday, the OPEC alliance, headed by Russia and Saudi Arabia, has made an agreement where they agreed to reduce the official oil offer of their group of 23 countries in 100,000 barrels from October 1 of this year. With this, the increase in pumping that was being adopted in its previous meeting of August 3 has been canceled. Now we will talk about everything that is known about it.
Cut in oil production
In the OPEC Alliance meeting, the ministers have agreed to “return to the production level of August 202”, referring to the rising adjustment of 0.1 million barrels of daily oil (MBD) was provided only by until September.
Also, during their final statement the ministers made a call to consider the possibility of convening a new Ministerial Meeting of the OPEC+ to discuss the evolution that the market develops and act in consequence of seeing it as something necessary.
The ministers stressed that the decision to increase the number of meetings is motivated by “the current fundamentals of the oil market”, and reach a consensus on their perspectives, although they did not announce all the reasons behind this decision.
All evidence suggests that the change in the management of the oil market and the OPEC meetings indicate that it is feared that a new slowdown of the economy will cause the fall of the oil demand and the petroprecios that had previously established themselves.
Impact of oil production
The new withdrawal of supplies agreed by the OPEC arrives at a time of high voltage between the world’s energy markets, after the historical journey of President Joe Biden to Saudi Arabia to ask that the taps open to reduce crude oil and reduce inflation.
Especially difficult you can see the situation for Europe that faces a problem with Moscow, after it decided on Friday to suspend gas supply indefinitely by the Nord Stream 1 and will threaten to cut all sales of oil and products derived to the European Union, if the power that composes the G7 impose a roof at the price of the Russian crude.
The fall in the oil demand is something that had been pressing the fall in the price of the barrel for several months, causing a loss of more than 20% from the picos of 120 dollars that had risen in the month of June.
Now, the fact that the OPEC reduced its oil pumping allowed the market in the market to be reversed positively. Advancing to the result of September teleconference, an advance of 2.3% to $ 95.2 per barrel for Brent oil can be theorized.