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
Source: Christian Bruna/EPA-EFE/Shutterstock
Additional information by Barney Gray
Speak with ICIS
Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.
Want to learn about how we can work together to bring you actionable insight and support your business decisions?