- Wednesday, October 16, 2024
Crude prices are on the rise at the beginning of the week, continuing the gains seen at the end of last week. This surge comes in response to a report from the Financial Times that Saudi Arabia intends to extend its voluntary output restrictions into next year. Meanwhile, other members of the Organization of the Petroleum Exporting Countries (OPEC) are considering further production cuts.
In the past week, prices had dropped to a four-month low and experienced a fourth consecutive week of declines. The reasons behind this decline include concerns over weakening global energy demand due to an economic slowdown. Additionally, there was relief that the conflict in the Middle East had not directly involved major oil-producing countries like Saudi Arabia or Iran. Furthermore, inventories have been building up in storage facilities in Cushing, Oklahoma.
However, sentiment appears to be shifting now. The FT reported that OPEC members are not only worried about declining prices but also concerned about the ongoing Israel-Hamas war and the humanitarian conditions in Gaza. These discussions have been attributed to unidentified sources.
As of early Monday, Brent crude, the international benchmark, has increased by 0.8% and is currently valued at $81.22. Similarly, West Texas Intermediate, the U.S. standard, rose by 0.8% to $76.53.
The next OPEC meeting is scheduled for November 26th in Vienna.
All Rights Reserved © 2024
Post a comment