the OPEC agreement on the reduction of oil supply; Supply will decrease by 100,000 pumps per day from October
Houston: International oil prices rose more than $2.50 a barrel on Monday after OPEC Plus, the Organization of the Petroleum Exporting Countries, agreed to cut crude oil supplies by 100,000 barrels a day to from October. This will be the first reduction in supply on the international market this year and aims to stabilize prices on the international market, which have been falling for two years.
At a meeting on Monday, OPEC Plus decided to cut supply by 100,000 barrels a day next month, bringing supply back to August levels, the organization said in a press release. According to the source, the next “OPEC Plus” meeting will be held on October 5. Meanwhile, keeping an eye on market developments, convening a ministerial-level meeting of OPEC and non-OPEC countries at any time will also be considered.
However, Russia, the world’s second-largest oil producer and a key member of the “OPEC Plus” group, did not support the production cuts and is also likely to decide to keep production stable. Oil prices have fallen steadily over the past three months after hitting multi-year highs in March. Interest rate hikes by central banks around the world and layoffs in parts of China due to the corona virus predict a recession in the global economy, and fear that this may have an effect on reducing of oil demand is also under pressure on the “OPEC Plus” group.
The oil is hot! Brent crude futures for November delivery rose $3.57 (3.8%) to $96.59 a barrel in Monday’s session following the decision by oil exporters.