West New York Texas Intermediate crude futures (WTI) closed lower on Friday (Dec. 2) as investors eyed the meeting of the Petroleum Exporting Countries (OPEC) and its allies (OPEC Plus). On Sunday, December 4, ahead of the G7, including the European Union (EU) and Australia, to set a ceiling on Russian oil prices on Monday, December 5.
- The WTI Crude Oil Contract for January Delivery was down $1.24, or 1.5%, at $79.98/barrel. But it has risen almost 4.9% this week.
- Brent crude oil contract (BRENT) to be delivered in February. Lost $1.31, or 1.5%, to $85.57/barrel, but was up 2.2% for the week.
Oil prices fell during trading on Friday. After news reports that the EU can reach an agreement on Russian oil prices at $ 60 / barrel. and continuously review such measures to keep the price ceiling below the average market price by at least 5%
The aim of the measure is to reduce the Russian oil price ceiling by selling oil that would support the war in Ukraine. But it must not affect the global oil supply to the point of causing a shortage.
The Group of Seven (G7) industrialized nations, along with the EU and Australia, are expected to set a cap on Russian oil prices on December 5, which will apply to Russian oil output transported via tankers. Excluding oil transported through oil pipelines.
Investors in the oil market will be keeping an eye on OPEC Plus to hold a video conference on Sunday, December 4, to determine oil production policy for December.
Five sources said OPEC Plus would not change its production policy at the meeting. It will confirm its decision at a meeting on October 5 to cut output by 2 million barrels per day until the end of 2023.
However, two other sources expect OPEC Plus to cut more output at the meeting.
“We cannot rule out the possibility that OPEC Plus could cut production further. and if OPEC Plus does not take such steps There is a risk of a strong sell-off in the market,” said Stephen Brennock, an analyst at PVM Oil.
By InfoQuest News Agency (03 Dec ’22)
Tags: lifestyle , WTI oil , crude oil , oil price