Great anger arose in Washington when the last meeting of OPEC countries and their cooperating governments, including Russia (OPEC+), decided to cut global oil production. The US government even threatened Saudi Arabia with consequences. Now the government in Riyadh could accommodate the US. A newspaper report reported on Monday about a possible expansion of production volume.
As the Wall Street Journal wrote, the leading OPEC country Saudi Arabia is discussing a 500,000 barrels per day increase in production with other OPEC countries ahead of the next OPEC+ meeting on Dec. 4. This news caused oil prices to plummet worldwide. The price for a barrel (159 liters) of North Sea Brent fell at times to 82.31 dollars (around 80 euros). A barrel used to cost more than 87 dollars (about 85 euros).
Saudi denial soon followed. “OPEC+ does not discuss decisions ahead of its meetings,” said Saudi Energy Minister Prince Abdulaziz bin Salman. “The recent cut of 2 million barrels per day by OPEC+ will last until the end of 2023 and we may take further action to balance supply and demand through production cuts if necessary,” the statement said.
The drop in oil prices has been going on for some time now
After this ruling, oil prices recovered. A barrel recently cost $86.11. The development of the American variety WTI was similar. With the current slump, oil prices are continuing the decline that had accelerated last week due to mounting concerns about the global economy and lower demand. Crude oil from the North Sea has fallen in price by more than 13 percent since the beginning of the month.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.