Oil prices fall on Monday after rising by more than 15% last week amid the decision of OPEC + to cut production immediately by 2 million barrels per day (b / d).
Market fears related to the possibility of falling energy demand following the weakening of the global economy as a result of the rapid tightening of policies by world central banks remain, Bloomberg notes.
US unemployment statistics released last Friday showed that the US labor market is still strong. This was taken by traders as a signal that the Federal Reserve (Fed) may again raise the rate by 75 basis points (bp) at the next meeting.
The price of December futures for Brent crude on London’s ICE Futures exchange is $97.08 per barrel by 8:10 qoq on Monday, which is $0.84 (0.86%) lower than the closing price of the previous session. As a result of trading on Friday, these contracts rose by $3.5 (3.7%) to $97.92 per barrel.
The price of futures for WTI oil for November in electronic trading on the New York Mercantile Exchange (NYMEX) fell by this time by $0.77 (0.83%), to $91.87 per barrel. By the close of previous trading, the value of these contracts increased by $4.19 (4.7%) to $92.64 per barrel.
As a result of the week, Brent has risen in price by 15%, WTI – by 16.5%.
As reported, OPEC+ last week decided to cut its November production quota by 2 million barrels per day compared to October, the largest cut since the start of the coronavirus pandemic.
“In reality, the decline will be only about 1 million b / d, since oil production in many countries was already lagging behind quotas,” Commerzbank analysts cited by Bloomberg said. “This, however, will be enough to prevent an excess of supply on market forecast for the fourth quarter.
