Amid OPEC member countries ignoring production limits, the Saudi minister warned that crude oil prices would reach $50.
Crude oil futures rose significantly in early trading, but fell in the final trading session on Wednesday. OPEC Plus key ministers plan to begin increasing production in December.Without changing policies,concerns about excess market supply resurfaced.
According to reports, key members of OPEC+ agreed to maintain the previously agreed plan to gradually increase daily production by 0.18 million barrels in December as part of an effort to unwind the voluntary cut of 2.2 million barrels per day until November 2025, easing production limits in an online meeting on Wednesday.
The U.S. Energy Information Administration released bearish data indicating a significant decrease in weekly demand until Friday, with domestic commercial crude oil inventories increasing by 3.9 million barrels.
According to reports, key members of OPEC+ agreed to maintain the previously agreed plan to gradually increase daily production by 0.18 million barrels in December as part of an effort to unwind the voluntary cut of 2.2 million barrels per day until November 2025, easing production limits in an online meeting on Wednesday.
The U.S. Energy Information Administration released bearish data indicating a significant decrease in weekly demand until Friday, with domestic commercial crude oil inventories increasing by 3.9 million barrels.
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Kimihiko OP : On the 2nd, the Wall Street Journal reported that Saudi Arabia's Energy Minister Abdulaziz warned that if the production limits agreed upon by OPEC+ are not adhered to, the price of crude oil could drop to $50 per barrel. Abdulaziz refuted the report, stating that it was incorrect.
WSJ had reported comments allegedly made by Abdulaziz during a conference call last week. The minister was also quoted by the same source as singling out Iraq and Kazakhstan as countries that are overproducing.
OPEC+ consists of OPEC member countries and non-member oil-producing countries.
OPEC clarified in a post that there was no conference call held last week, and no phone or video conferences have taken place since the OPEC+ meeting on September 5.
The post was made ahead of the OPEC+ Joint Ministerial Monitoring Committee (JMMC) meeting on the 2nd. At the meeting, OPEC+ decided to maintain the current production policy and mentioned that some member countries may need to further reduce production to offset overproduction.
Magnificent7 : The supply and demand of oil is challenging, isn't it?