US crude oil is valued at its highest since 2014, and its prices continue to rise. During the Monday meeting of the OPEC + countries, it was not possible to obtain consent to increase oil production. This was to reduce the pressure on the rapidly growing prices of this commodity around the world.
A barrel of West Texas Intermediate crude in November deliveries on the NYMEX fuel exchange in New York is selling for $ 77.70 on Tuesday morning. (up 0.10 percent) and is the most expensive since 2014.
Brent crude oil for December deliveries on the ICE Futures Europe fuel exchange in London costs $ 81.44. per barrel, up 0.22 percent.
Oil prices. OPEC + decision
On Monday, the OPEC cartel countries and its allies, including Russia, met. Oil producers from OPEC + decided to maintain the planned gradual increase in the supply of their crude oil, despite the rapid tightening of the situation on the global fuel markets and the threatening energy crisis.
– Such a decision by OPEC + will allow us to continue the normalization of the market situation – said Russian Deputy Prime Minister Aleksander Nowak.
Some market observers expected OPEC + to increase its daily oil quota due to the surge in natural gas prices, which pushed demand for oil and petroleum products ahead of the upcoming winter season.
Oil prices. Analysts’ forecasts
Analysts at Goldman Sachs Group Inc. estimate that the demand for oil this year will increase by an additional 650 thousand. barrels a day as companies struggling with high natural gas prices are switching to oil. “Oil prices are likely to remain high in the last quarter of the year with the gas-to-oil swap and high coal prices,” says Will Sungchil Yun, senior commodity analyst at VI Investment Corp.
– I think there is a narrative in the case of OPEC: “Look, this is not our crisis, there is not much we can do to solve it” – says Richard Gorry, managing director at consulting firm JBC Asia Pte.
– Additional oil barrels from OPEC + would slightly reduce the pressure on oil prices, but will not solve the energy crisis by adding more oil to the markets – he points out. At the end of the previous session, the WTI oil on the NYMEX gained 2.3%.
The next meeting of the OPEC + countries is scheduled for November 4.
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