Traders were shocked by OPEC+’s sharp decision to cut oil production by more than 1 million barrels per day. Such a measure could cause fuel prices to rise to at least $100 per barrel. In this respect informs Bloomberg agency.
“There is an optimistic version, if these ‘bullish’ moods (in stock market slang for “bulls”) – become a fuel for bull players, then we’re going to hit the $100 mark in full swing,” said Rapidan Energy Group president. and a former White House official for energy executive Bob McNally.
Market experts agreed that oil prices rose 8.4% after OPEC+’s unexpected decision, and then growth stalled. But overall, prices were trading at $83.94 a barrel, up 5% on the day. This happened due to the worsening of the situation in the global economy and the banking crisis.
Analysts think the drop in oil production is a highly optimistic move as buyers’ oil reserves will run out quickly. At the same time, the actions of OPEC+ show once again that the organization controls the situation in the supply and demand market.
Earlier on Monday, Bloomberg cited revised forecasts from analysts at US investment bank Goldman Sachs. reportedBy December of this year, the cost of North Sea Brent oil is likely to be around $95 per barrel. The dynamics will be affected by the plans of many OPEC+ countries to reduce daily production of raw materials, including Russia and Saudi Arabia.