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Opec Oil Cuts
On Monday, the MCX Crude Oil futures were seen trading above the 100-DMA for the first time in more than six months. Sustained trade above Rs 6,350 can help the trend turn favourable for Crude Oil.
Saudi Arabia said Thursday that the U.S. had urged the kingdom to postpone a decision by OPEC and its allies including Russia to cut oil production by a month. Such a delay could have helped reduce the risk of a spike in gas prices ahead of the U.S. midterm elections next month. A statement issued by the Saudi Foreign Ministry didn't specifically mention the Nov. 8 elections in which U.S. President Joe Biden is trying to maintain his narrow Democratic majority in Congress. However, it stated that the U.S. suggested the cuts be delayed by a month. In the end, OPEC announced the cuts at its Oct. 5 meeting in Vienna. Holding off on cuts would have meant implementing them just before the Nov. 8 election at a time when they likely couldn't drastically influence prices at the pump. Rising oil prices and by extension higher gasoline prices have been a key driver of inflation in the U.S. and around the world, worsening global economic woes as Russia's months-long war on Ukraine also
Saudi Arabia said on Thursday that the US had urged the kingdom to postpone a decision by OPEC and its allies including Russia to cut oil production by a month which would have been just before the upcoming American midterm elections. A statement issued by the Saudi Foreign Ministry didn't specifically mention the elections, crucial to US President Joe Biden maintaining his Democratic Party's narrow majorities in Congress. However, it stated that the US suggested the cuts be delayed by a month as opposed to being implemented at OPEC's October 5 meeting in Vienna. A month delay would have put them just before the November 8 elections where they likely couldn't have drastically influenced prices at the pump. Rising oil prices and by extension higher gasoline prices have been a key driver of inflation in the US and around the world, worsening global economic woes as Russia's monthslong war on Ukraine also has disrupted global food supplies. For Biden, gasoline prices creeping up
A higher than expected production cut by the group will add to the strain on government finances
Brent crude was up 87 cents, or 0.9%, to $95.29 a barrel at 1110 GMT. U.S. West Texas Intermediate or WTI crude gained 98 cents, or 1.1%, to $89.43
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If latest reduction in output by OPEC+ is sustained through Dec 2023, it would amount to $25 per barrel upside to their Brent forecast, Goldman Sachs said in a note
Global stock markets advanced on Thursday after strong US hiring dampened hopes the Federal Reserve might ease off plans for interest rate hikes and the OPEC group of oil exporters agreed to output cuts to shore up prices. London, Frankfurt and Tokyo gained. Hong Kong declined. Mainland Chinese markets were closed for a holiday. Oil prices rose. The euro edged higher but stayed below USD 1. Wall Street futures edged lower after US stocks fell on Wednesday following a report by payroll processor ADP that employers added 208,000 jobs in September. That showed parts of the economy are still strong, giving ammunition to Fed officials who say more rate hikes are needed to cool inflation that is at a four-decade high. The economy is too strong for the Fed to pivot. The strong start to October is over, said Edward Moya of Oanda in a report. In early trading, London's FTSE 100 was up less than 0.1 per cent at 7,059.11. The DAX in Frankfurt gained 0.7 per cent to 12,610.37 and the CAC 40 i
Brent crude futures for November, which expire on Friday, rose by 95 cents, or 1.07%, to $89.44 a barrel by 0948 GMT. The more active December contract was up 81 cents at $87.99
Brent crude futures were up 5 cents, or 0.06%, at $86.32 per barrel by 0937 GMT, while U.S. West Texas Intermediate crude futures were down 9 cents, or 0.1%, at $78.41 per barrel
The European countries are bracing for a winter sans gas as supplies remain disrupted from Russia. And oil prices are above $95 per barrel on the supply cut decision by OPEC+. What next for investors?
OPEC+ meeting: While analysts said the current output cut is insignificant to move the needle on oil prices, they cautioned that more output cuts may push oil prices higher, impacting India
The group will reduce production by 100,000 barrels a day next month, taking supplies back to August levels, it said in a statement
Brent crude futures rose 32 cents to $96.80 a barrel by 0004 GMT, after a choppy session on Monday when they dropped by more than $4 before paring losses to trade near flat
OPEC and allied countries are deciding whether to stay with their plans to gradually restoring production that was cut back during the pandemic recession or to pump more oil
Under the deal, non-OPEC countries Russia and Kazakstand can make small production increases
The figure is slightly below November's 101 percent
An internal OPEC document, suggested a 0.5 million bpd cut in February as part of several scenarios considered for 2021
Oil prices touched multi-month highs on expectations that OPEC and allied producers may cap output at current levels in February as the pandemic keeps worries about first-half demand elevated
At stake is the credibility of the cartel whose actions have underpinned the market since the spectacular oil crash earlier this year