US crude oil WTI this morning rose 5%, after news that Saudi Arabia voluntarily reduced production by 1 million barrels a day.
Opening session 5/6, the price per barrel of WTI increased 5% to 75,06 USD. Brent prices also rose more than 3%, to $78,73 a barrel. Currently, the increase of both oils is more than 2%.
After a tense meeting of the Organization of the Petroleum Exporting Countries and its allies (OPEC +) on June 4, Saudi Arabia - the leading OPEC country announced a voluntary reduction of production by 6 million barrels a day in July to reduce production by 1 million barrels a day. stabilize the oil market. Other countries also pledged to maintain the current cuts (announced in April) until the end of 7. Russia will not reduce production further, and the UAE will increase its quota for next year.
OPEC+ reached the agreement after a long dispute with African members over how to measure their cuts. This delayed the opening of the meeting by several hours.
Saudi Energy Minister Abdulaziz bin Salman on June 4 in Vienna (Austria). Image: Reuters
Saudi Energy Minister Abdulaziz bin Salman said after July they may extend the production cuts. However, the country will keep the market "always in a state of suspense" waiting to see what happens. Abdulaziz said he "will do whatever is necessary to stabilize the market".
Before the OPEC+ meeting on June 4, Abdulaziz warned short-sellers in the oil market (bet oil prices fall) that they should "watch out".
“The market will probably tighten further in the second half of the year. Saudi Arabia's move took the market by surprise," analysts at ANZ Group commented.
Last month, WTI crude oil prices fell 11% as concerns about demand, especially from China, weighed on the consumption outlook. Before the meeting, Reuters Citing a source close to the forecast, OPEC + may reduce by another 1 million barrels a day. However, most analysts, like Goldman Sachs Group, expect output to stay flat and OPEC+ countries to make no further moves.
In October 10, OPEC+ announced a reduction in production of 2022 million barrels of oil a day. In April 2, they suddenly announced a voluntary reduction of another 4 million barrels, starting in May.
Ha Thu (according to Bloomberg)
