Oil Prices Inch Lower Ahead Of OPEC+ Talks On Supply Cut
2 mins read
Published on October 27, 2022
Oil prices moderated very slightly on Wednesday after gaining more than 3% in the previous session ahead of a meeting of OPEC+ producers to discuss a big cut in crude output.
Traders said a stronger dollar was the main reason for the slightly easier prices, as it reduced demand from buyers using other currencies. [FRX/]
Brent crude fell 22 cents, or 0.2%, to $91.58 a barrel at 0427 GMT, after climbing $2.94 in the previous session.
U.S. West Texas Intermediate (WTI) crude futures fell 29 cents, or 0.3%, to $86.23 a barrel after gaining $2.89 in the previous session.
The Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, together called OPEC+, will be meeting in Vienna later on Wednesday, to discuss output cuts of up to 2 million barrels per day (bpd), an OPEC source told Reuters.
A cut of that magnitude would be the biggest made by OPEC+ since demand was hit by COVID-19 in 2020.
"I will not be surprised if “buy the rumour, sell the fact” could happen since the strong rally in the crude prices may have priced in such a production cut," Tina Teng, an analyst at CMC Markets, said.
The United States is pushing OPEC+ producers to avoid making deep cuts, a source familiar with the matter told Reuters, as President Joe Biden looks to prevent a rise in U.S. gasoline prices.
The real impact on supply from a lower output target would be limited as several OPEC+ countries are already pumping well below their existing quotas. In August, OPEC+ missed its production target by 3.58 million bpd.
However an agreement on big cuts "would send a strong message that the group is determined to support the market," ANZ Research analysts said in a note, adding that it "would significantly tighten the market."
U.S. crude oil stocks fell by about 1.8 million barrels for the week ended Sept. 30, according to market sources citing American Petroleum Institute figures on Tuesday.
Great Deals on Used CarsView All Used Cars
- 41,489 km
- 1,18,054 km
- 75,000 km
- 85,000 km
- 75,000 km
- 70,123 km
- 22,000 km
- 49,000 km
- 83,000 km
- 55,000 km
3 hours ago
A strong push during the festive season helped Ola Electric achieve its highest-ever monthly sales, retaining its number-one position in the market.
Gauhar Khan and her husband, Zaid Darbar, were pictured together at the dealership in Mumbai while taking delivery of their new Mercedes.
Hero MotoCorp’s cumulative sales for November 2023 stood at 491,050 units, witnessing a 25.61 per cent increase year-on-year
5 hours ago
The bikemaker’s cumulative motorcycle sales for the year 2023 stood at 621,672 units, reflecting a 13 per cent increase.
5 hours ago
In the previous month, the automaker sold a total of 11,891 units, marking a growth of 24 per cent as compared to the same month last year.
6 hours ago
At present, India’s largest carmaker holds just a little over 2.06 lakh open bookings, nearly a third of which are for the Ertiga.
7 hours ago
New variant of the Chetak scooter gets some changes as compared to the Premium variant currently on sale.
8 hours ago
The cumulative sales for the Calendar Year 2023 reached 2,10,497 units - a 40 per cent growth over 2022
9 hours ago
While sales were up in comparison to November 2022, Ather reported a 7 per cent decline in sales as compared to October 2023
Brent crude futures rose 1.8%, to settle at $76.69 a barrel, while U.S. West Texas Intermediate crude (WTI) ended $1.23 higher at $70.90.
Brent crude settled down 1.2%, to $74.99 while West Texas Intermediate U.S. crude futures fell 1%, to $69.26 a barrel.
Brent crude futures fell by 78 cents to settle at $75.91 a barrel. U.S. West Texas Intermediate crude futures slid by 94 cents, to end the session at $69.96 a barrel.
According to the International Energy Agency (IEA), Russia's total exports of oil and petroleum products in February 2023 fell to 7.5 million barrels per day (bpd), from an average amount of 7.7 million bpd in 2022 (7.5 million bpd in 2021).
Fuel demand in February hit its highest level in at least 24 years, data from the website of the Petroleum Planning and Analysis Cell (PPAC) showed this month.