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 : [2nd Reuters] - The Organization of Petroleum Exporting Countries (OPEC) refuted on the 2nd that the US paper Wall Street Journal (WSJ) report that Saudi Arabia's energy minister Abdulaziz warned about crude oil prices that there is a risk that they will fall to 50 dollars if production quotas agreed in “OPEC Plus” are not followed, is wrong.
WSJ reported it as a story from an OPEC Plus delegation source who heard this statement that Mr. Abdul Aziz made on a conference call last week. It was also conveyed by the same source that the same minister named Iraq and Kazakhstan as countries with excessive production.
OPEC Plus consists of OPEC member countries and non-member oil-producing countries.
OPEC posted to X that there was no fact that a conference call was held last week, and that no phone calls or video conferences have taken place since the OPEC Plus meeting on 9/5.
I posted before the Joint Ministerial Monitoring Committee (JMMC) meeting on the 2nd by OPEC Plus. At the same meeting, OPEC Plus decided to maintain the current production policy. It was also stated that it is necessary for some member states to make further production cuts in order to offset overproduction.
Magnificent7 : The supply and demand of oil is challenging, isn't it?