Market updates and forecasts

Get the latest economic news from ForexMart, including updates on the financial market, central banks' policy announcements, financial indicators, and other relevant news which can have an impact on the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

Oil has risen sharply on OPEC+ production cuts


April, 03 2023
watermark Economic news

The oil market showed a sharp increase in quotations on Monday morning: Brent crude jumped to $86.44 per barrel, North American WTI crude – to $81.58 per barrel. 


The driver of such rapid growth was the results of the OPEC+ meeting held this weekend. The meeting resulted in the decision of 8 of the 20 countries of the alliance, including Russia and Saudi Arabia, on a voluntary additional reduction in oil production from May to the end of the year.


The total decrease in oil production will be approximately 1.657 million b/d, of which 500 thousand b/d will fall on the leaders of the deal – Russia and Saudi Arabia. From non-OPEC+ countries, Kazakhstan (by 78 thousand b/d), Oman (40 thousand b/d) are going to reduce production. 


Among the OPEC countries, the UAE will reduce production by 144 thousand b/d, Kuwait – by 128 thousand b/d, Iraq – by 211 thousand b/d, Algeria – by 48 thousand b/d, Gabon – by 8 thousand b/d.


Analysts note that global producers are clearly unhappy with the recent drop in oil prices, which was more speculative than caused by fundamental factors. And most likely, OPEC will be able to return oil quotes to the area above $ 80 per barrel for quite a long time. 


In addition, some experts believe that the announced production cuts may raise prices by another $10 per barrel from current levels. For example, Goldman Sachs Group raised its forecasts for Brent prices after announcing cuts to $95 per barrel by the end of 2023 and to $100 for 2024.


Feedback

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.