At the beginning of the week, the main oil benchmarks began to grow due to the reports of Saudi Arabia about its intention to reduce the supply of “black gold” in December by 500 thousand barrels per day.
Because of this, the January contracts of Brent have risen by 1.6%- to the value of $ 71.3 per barrel. December futures for WTI crude have grown by 1.1% to $ 60.8 per barrel.
After last week, WTI prices have gained a bearish trend, as the market has been experiencing a drop in prices for 10 consecutive sessions. This has not happened for almost 35 years, since 1984. Both benchmarks has been suffering losses for five weeks. Such a fall is a record for the last 4 years.
Meanwhile, Saudi Minister of Energy Khalid A Al-Falih shared his forecast, according to which December oil production of the OPEC+ would decline relative to November.
“We have contacted the countries excluded from the agreement and asked them to accept the reduction if it happened. It is not yet known whether the production should be reduced, – ”explains the Minister. He also noted that Saudi Arabia would not influence the market alone and would wait for the actions of other participants.
Russia also intends to support the reduction if the OPEC + comes to a general agreement, which can happen in case of a serious surplus in the market. At the moment, only the United States shows it.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade