03 April 2023

Surge in Oil Prices To Maintain Market Stability

 “Officially, the cartel [Opec+ group of countries, which includes major producers Saudi Arabia, Iraq and Russia] wants price stability in oil markets,” said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank. “But in reality, they simply want higher prices.” 

Oil price surges after surprise OPEC+ production cut

Move by world’s largest producers likely to unsettle western nations grappling with inflation

"The oil price surged to $86 a barrel after the world’s largest producers announced a surprise cut in production , a move that is likely to prompt fresh tensions with the US as western governments try to get a grip on inflation.

The Opec+ group of countries, which includes major producers Saudi Arabia, Iraq and Russia, said they would slash production by around 1m barrels a day, accounting for about 3.7% of global demand.

That is on top of existing plans to continue cutting 2m barrels a day – originally agreed in November – until the end of 2023.

The decision caused an immediate spike in Brent crude futures contracts for May, with the international benchmark for oil prices rising more than 7% to $86 a barrel on Monday morning. . ." 


Oil surges as OPEC+ surprise output target cuts shake markets

by 2 million barrels through the
0 of 1 minute, 40 secondsVolume 0%
Oil prices soar after OPEC+ nations' surprise cut
  • OPEC+ cuts output by about 1.16 million bpd
  • Oil posts biggest daily rise in nearly a year
  • Producer group acted after oil hit $70 a barrel
  • Goldman Sachs raises Brent price forecast to $95 for 2023

LONDON, April 3 (Reuters) - Oil prices surged on Monday, posting their biggest daily rise in nearly a year, after a surprise announcement by OPEC+ to cut more production jolted markets.

Brent crude was trading at $84.53 a barrel as of 1115 GMT, up $4.64, or 5.8%, after touching the highest in a month at $86.44.

West Texas Intermediate crude U.S. was at $80.23 a barrel, up $4.56, or 6%, after hitting its highest level since late January..." READ MORE

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