The oil price intermediate of Texas (WTI) closed this Friday with a rise of 4.7% and stood at $92.64, thus ending the week above the 90 barrier Dollars After the OPEC+ announced that it will cut its oil production by 2 million barrels per day.
The price of US black gold rose for the fifth consecutive session, gaining 16.5% compared to the previous week, when it closed below $80.
“For several weeks, fears about the weakening of the global economy had been weighing on oil prices,” he said. Colin Cieszynskychief market strategist SIA Wealth Managementin statements collected by Market Watch.
“This week, however, the sentiment change after OPEC+ showed the world that it is prepared to cut supply to defend the price against political and central bank opposition from the US and other countries,” he added.
The Organization of Petroleum Exporting Countries and their allies (OPEC+), led by Saudi Arabia and Russiadecided last Wednesday in Vienna to reduce its output by 2 million barrels per day (mbd) from November, which represents the largest cut in oil supply since May 2020.
Nevertheless, Capital Economics estimates that the decision will result in a cut of just over 1 million barrels per day, or about 1% of global supply.
For its part, Tom Essaye noted this Friday in the report of The Sevens Report that the OPEC+ production cut this week “has been the main driver of the energy rebound”, but that other news has also been favorable, such as “the weekly report from the EIA (the US Energy Information Administration) and economic data that offer evidence that the policy of the Federal Reserve The US (Fed) is achieving its goal of slowing growth.”
“Traditionally slower growth is negative for oil from a demand standpoint. But in the current environment, it all depends on the Fed’s expectations,” he added.
The contracts of futures of natural gas for November they subtracted 22 cents from the dollar, up to 6.74 Dollarsand those of gasoline due the same month they added 5 cents, to 2.73 dollars a gallon.