U.S. crude oil rose by as much as 11 percent this week, driven by OPEC+'s aggressive production cut decision. On the last trading day of the week, US crude oil was stabilized around 88 dollars and Brent oil around 94 dollars.
While OPEC members and their oil producer partners (OPEC+), including Russia, decided to make the biggest production limit cut since the beginning of the pandemic with 2 million barrels a day, some institutions raised their year-end expectations for oil prices.
In the White House statement, it was stated that US President Joe Biden "saddened by OPEC+'s short-sighted decision" and called on energy companies to continue lowering gasoline prices.
White House Press Secretary Karine Jean-Pierre said that the decision, which she considers a "mistake", clearly demonstrates that the oil cartel is on the same side as the US and Russia against the west.
On the other hand, Russian Deputy Prime Minister Alexander Novak stated that the European Union's efforts to impose a price cap on Russian oil would backfire and cause a temporary cut in the country's production. Speaking after the OPEC+ meeting in Vienna, Novak reiterated his warning that his country will not sell oil to countries that have adopted price caps.
Goldman Sachs also increased its fourth-quarter Brent oil price forecast by $10 to $110 a barrel. All developments on the supply side point to higher oil prices for the end of this year, said Damien Courvalin, the bank's Energy Research Director. UBS analysts also predicted that Brent crude would climb above $100 a barrel in the coming quarters.
Comments
No comment yet.