Oil: Saudi Arabia announced a reduction in production by 500 thousand barrels
Last Friday, oil prices collapsed to new lows in April. Brent pierced around 70 and barely stayed above 69. But in the beginning of the new week prices have settled above the level 71 and are committed to further restoration.
Following the meeting of the Ministerial monitoring Committee of OPEC+ Saudi Arabia announced a reduction in production by 500 thousand barrels a day starting in December. Of course, the market is a little, but at this stage is enough to keep prices afloat. Tougher measures manufacturers to go until you want, including from-for unwillingness to cede market share to us kancevica.
But let’s not forget that prior to the December semi-annual OPEC meeting in Vienna less than a month. All this time, the market will prepare for the meeting between exporters and wondering what the verdict is. In this regard, in the coming weeks, the commodity segment is likely to show volatility spikes on rumors and speculation in anticipation of significant events.
In the short term, Brent is likely to stay afloat, but is unlikely to show a sustainable rally. At least at the moment pretexts for it there, the more the dollar is growing decently across the entire spectrum of the market, limiting bullish potential of oil.
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