Crude prices rise as OPEC+ set to cut output by 100,000 bbl/day

MADRID (ICIS)–Crude oil prices rose in Europe’s afternoon trading session after OPEC+ was set to cut output by 100,000 bbl/day, the producing cartel led by Saudi Arabia and Russia said on Monday.

The decision reverses OPEC+’s August decision to increase output by 100,00 bbl/day which was implemented in September.

Crude oil prices rose ahead of the OPEC+ meeting as players were expecting the cartel to announce an output cut.

International reference Brent in the afternoon traded at $99.57/bbl, up $2.55/bbl compared with the close on Friday (2 September).

After the OPEC+’announcement, prices continued to climb, and at 15:45 CEST Brent was trading at $96.28/bbl.

“[OPEC+ decided to] revert to the production level of August 2022 for OPEC and non-OPEC participating countries for the month of October 2022… noting that the upward adjustment of 100,000 bbl/day to the production level was only intended for the month of September 2022,” said OPEC+.

Higher crude prices will increase input cost pressures at European petrochemical companies where margins have already been squeezed by rising energy costs.

Front page picture: OPEC’s headquarters in Vienna
Source: Christian Bruna/EPA-EFE/Shutterstock

Additional information by Barney Gray