New York West Texas Intermediate (WTI) crude futures closed down for a second day in a row on Tuesday (October 4), buoyed by expectations that the Organization of the Petroleum Exporting Countries and Allies or OPEC Plus will cut oil production in a big way at today’s meeting .In addition, the depreciation of the dollar is also a factor that supports buying in the oil market.
- The WTI crude oil contract was executed in November. It was up $2.89, or 3.5%, at $86.52 a barrel. This is the highest closing level since September 14, 2022.
- The Brent crude oil contract (BRENT) delivered in December. It was up $2.94, or 3.3%, at $91.80 a barrel. This is the highest closing level since September 19, 2022.
Crude oil futures rose on expectations that OPEC Plus will make major production cuts at today’s meeting in Vienna. Austria Reuters reported, citing sources as saying. OPEC Plus is considering cutting oil production by more than 1 million barrels per day for November. This will be the biggest production cut since 2020, or since COVID-19. start spreading
While Bloomberg News Agency reported that OPEC Plus is considering cutting oil production up to 2 million barrels per day.
The market was also driven by the depreciation of the dollar. The dollar index, which measures the dollar’s movements against six major currencies in a basket of currencies, fell 1.5 percent to 110.0690 overnight.
The weakening of the dollar has led to crude oil contracts priced in dollars. It is cheaper and more attractive to investors who hold other currencies.
Investors are eyeing the release of crude inventories from the US Federal Energy Information Administration (EIA) today, while analysts expect crude stockpiles to rise by 2 million barrels in the past week.
By InfoQuest News Agency (05 Oct 65)
Tags: lifestyle , WTI oil , crude oil , oil prices
