Oil prices rise on Monday ahead of the OPEC+ meeting, traders are assessing the possibility of cutting production after recent statements by Saudi Energy Minister Prince Abdulaziz bin Salman about the possibility of such a move.
Most experts still believe that OPEC + will not reduce the oil production plan for October, Bloomberg notes. JPMorgan analysts explain this opinion by the fact that the summer surplus of raw materials in the world market can quickly turn into a deficit.
The price of November futures for Brent oil on the London ICE Futures exchange by 8:15 pm on Monday is $95.06 per barrel, which is $2.04 (2.19) higher than the closing price of the previous session. As a result of trading on Friday, these contracts rose by $0.66 (0.7%) to $93.02 per barrel.
The price of futures for WTI oil for October in the electronic trading of the New York Mercantile Exchange (NYMEX) is $88.66 per barrel by this time, which is $1.79 (2.06%) higher than the final value of the previous session. By the close of the market on Friday, the value of these contracts increased by $0.26 (0.3%) to $86.87 per barrel.
As a result of the past week, Brent fell by 6.1%, WTI – by 4.6%.
In Europe, the energy crisis is intensifying against the background of the suspension of Russian gas supplies via the Nord Stream gas pipeline. On Friday evening, Gazprom reported that the maintenance of the only working turbine of the Nord Stream revealed “gross violations” and the gas pipeline would not work without their elimination.
Shortly before this, the G7 countries approved a plan to introduce a price ceiling for oil exported by Russia. To implement this plan, the G7 countries intend, in particular, to ban insurance of tankers with Russian oil if it is sold at a price above a certain limit.
“We believe that Gazprom’s decision to extend the shutdown of Nord Stream supplies from the originally announced three days indefinitely is inextricably linked to the G7’s adoption of the price cap plan,” said James Whistler, managing director of Vanir Global Markets Pte. Bloomberg.
Although the G7 countries are striving to maintain the supply of Russian energy resources to the world market, while reducing Russia’s income, “in reality, everything happens the other way around,” the expert says.
