OPEC Cuts Put Oil Prices on Track to Make Big Gains
- last year
OPEC Cuts , Put Oil Prices , on Track to Make Big Gains.
CNBC reports that oil prices are set to see their
biggest gain in almost a year since OPEC announced
it would cut output by 1.6 million barrels per day.
Following the announcement,
brent crude futures rose 6.15%
to reach $84.80 a barrel.
Meanwhile, U.S. West Texas
Intermediate crude futures jumped
6.25% to reach $80.40 per barrel.
CNBC reports that the OPEC cuts
will begin in May and run
until the end of 2023. .
Saudi Arabia reportedly called the decision
a "precautionary measure" aimed at
stabilizing the volatile oil market.
The news comes after Russia
announced that it would cut oil
production by 500,000 barrels per day. .
CNBC reports that other oil producers
have also vowed to cut production,
including the UAE, Kuwait, Oman and Iraq. .
The selected involvement of the largest
OPEC+ members suggest that adherence
to production cuts may be stronger
than has been the case in the past, Vivek Dhar, Commonwealth Bank of Australia, via CNBC.
CNBC reports that some experts have suggested
that the latest cuts may have a more significant
impact that similar cuts made in 2022.
Most of the cuts will be made by countries
that are producing at or above quotas,
which implies a higher share of
the announced cuts will translate into real
supply reductions than in October 2022, Amrita Sen, Energy Aspects’ founder, via CNBC
CNBC reports that oil prices are set to see their
biggest gain in almost a year since OPEC announced
it would cut output by 1.6 million barrels per day.
Following the announcement,
brent crude futures rose 6.15%
to reach $84.80 a barrel.
Meanwhile, U.S. West Texas
Intermediate crude futures jumped
6.25% to reach $80.40 per barrel.
CNBC reports that the OPEC cuts
will begin in May and run
until the end of 2023. .
Saudi Arabia reportedly called the decision
a "precautionary measure" aimed at
stabilizing the volatile oil market.
The news comes after Russia
announced that it would cut oil
production by 500,000 barrels per day. .
CNBC reports that other oil producers
have also vowed to cut production,
including the UAE, Kuwait, Oman and Iraq. .
The selected involvement of the largest
OPEC+ members suggest that adherence
to production cuts may be stronger
than has been the case in the past, Vivek Dhar, Commonwealth Bank of Australia, via CNBC.
CNBC reports that some experts have suggested
that the latest cuts may have a more significant
impact that similar cuts made in 2022.
Most of the cuts will be made by countries
that are producing at or above quotas,
which implies a higher share of
the announced cuts will translate into real
supply reductions than in October 2022, Amrita Sen, Energy Aspects’ founder, via CNBC