The possibility of a reduction in OPEC+ production made oil more expensive

According to the report of the International Economic Group of Fars News Agency, quoted by Reuters, the price of oil, after falling yesterday to the lowest figure in the last 11 months, increased in today’s trading due to the possibility of a reduction in production by major producers who have a meeting this week.

Brent oil rose by one dollar and 93 cents to $85.12 per barrel, and US crude oil rose by one dollar and 63 cents to $78.87 per barrel. Brent oil lost 0.5 percent of its value yesterday. US crude oil also lost 1.3% of its value.

Although the market has corrected its prices after a sharp decline the previous day, indications that OPEC+ is seriously considering further production cuts have also bolstered prices, analysts at Hitong Futures wrote in a note.

According to these analysts, “although this is just speculation…not an official statement from OPEC, it shows the short-term market sentiment and will likely be a defining point for oil prices.”

The Organization of the Petroleum Exporting Countries (OPEC) and its allies known as OPEC+ are scheduled to hold a meeting on December 4. Analysts at Eurasia Group predicted in a note on Monday that falling demand in China could prompt OPEC+ to cut production. Since November, OPEC+ has reduced its production by 2 million barrels per day in order to strengthen the price of oil in the market.

However, despite the decrease in the number of infected people in China, the concern about the drop in demand in this country continues to put pressure on the market.

In this regard, market analyst Toshitaka Tazawa said: “Due to concerns about the decline in demand in China, bearish sentiment is spreading in Asia, while the weekend protests also raised concerns about their impact on the Chinese economy. Created.”

At the same time, the market is estimating the effects of the price ceiling that is going to be set and applied for Russian oil.

end of message/