Oil prices buoyant on unchanged output by OPEC+
Oil prices remain buoyant Monday morning by OPEC+’s unchanged production targets ahead of EU sanctions on Russian crude taking effect, writes Reuters.
A barrel of European reference crude Brent costs USD 86.27 Monday morning against USD 86.82 Friday afternoon. US counterpart West Texas Intermediate trades concurrently at USD 80.66 against USD 81.35 Friday afternoon.
OPEC+ sticks to the October plan of lowering crude oil production by 2 million barrels per day from November through 2023.
Analysts tell Reuters that OPEC+ will stick to the plan while waiting for the effect of the EU’s import ban on Russian crude and price cap of USD 60 per barrel to take hold.
At the same time, Russia is threatening to cut off all mutual oil trade with nations that accept the price ceiling.
Oil prices are also kept afloat by China easing the strict Covid-19 rules, fanning hopes of stronger demand from the world’s largest oil importer.
”While OPEC remained steady on output over the weekend, I expect they will continue to balance the market,” says head of commodity research at National Australia Bank Baden Moore.
EU, G7, Australia approve price cap of USD 60 on Russian oil exports
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