(New York) Oil prices rose again on Tuesday, pushed by the prospect of a production cut from the Organization of the Petroleum Exporting Countries (OPEC) and its OPEC+ allies, as well as the net decline of the dollar.
Posted at 4:24 p.m.
The price of a barrel of Brent North Sea oil for December delivery gained 3.36%, to close at $91.80.
The price of a barrel of American West Texas Intermediate (WTI) for delivery in November took him 3.45%, to 86.52 dollars, the highest in three weeks.
“Prices continued to rise on reports that OPEC ‘plans to cut supplies by up to 2 million barrels per day,’ Edward Moya of Oanda said in a note.
Members of the OPEC+ group are meeting in Vienna on Wednesday to determine the cartel’s production level for the month of November. They had already announced a first cut of 100,000 barrels per day for October at their previous meeting in September.
“They’re failing to meet their (existing) quotas so in practice it might not make much difference,” said Bill O’Grady of Confluence Investment.
In August, the OPEC+ group thus produced daily 3.58 million barrels less than its official target.
Bart Melek of TD Securities expects a posted reduction of 1.25 million barrels per day, “which would translate into an effective reduction of 500,000 barrels per day”, obscuring members who do not meet their targets .
JPMorgan analysts expect a real drop of almost a million barrels per day from August levels, the reduction decided on Wednesday being combined with a further involuntary slowdown in several member countries such as Russia, Nigeria or the United States. ‘Angola.
Although the concrete effect on global crude supply could be limited, “it is an important signal that OPEC is trying to guide prices to a level that is probably not suitable for the West”, according to Bill O’Grady.
“Prices were already heading towards 100 dollars (a barrel) and it seems that OPEC made them change gear,” considers Edward Moya. “The market will remain tight all winter and it seems that operators expect prices to remain strong. »
Bill O’Grady also insisted on the impact of the fall in the dollar, which has fallen sharply over the past two days with the renewed appetite for risk.
The oil rebound combined with the immobilization of several refineries, in the middle of the maintenance season, gave a new impetus to the price of gasoline. The wholesale price of fuel in the United States jumped 6.80% on Tuesday to reach its highest level in a month and a half.