Oil fell on Wednesday, October 4, as Saudi Arabia and Russia pledge to continue production cuts through the end of 2023. offset by demand fears stemming from macroeconomic headwindsas reported by Reuters.
At 1045 GMT, Brent crude futures were down US$1.58, or 1.74%, at US$89.34 a barrel; and the West Texas Intermediate (WTI)—which serves as a reference in Peru—fell US$1.60, or 1.79%, to US$87.63.
“Market attention has shifted from short-term shortages to the implications of interest rates staying higher for longer, the moderate macroeconomic environment that this entails and how OPEC+ plans to address it when it meets on November 26″said Callum Macpherson, analyst at Investec.
The OPEC+ Joint Ministerial Monitoring Committee (JMMC) is holding a meeting during the day in which it is expected to maintain its current oil production, sources told Reuters.
Saudi Arabia’s Energy Ministry confirmed it will maintain its voluntary crude supply reduction of 1 million barrels per day (bpd) until the end of this year.
For its part, Russia indicated that it will maintain its current cut in crude oil exports of 300,000 bpd until the end of the year and that it will review in November its voluntary reduction in output of 500,000 bpd, set in April.
The strength of the dollar could also be weighing on investor sentiment. A strong greenback makes crude oil more expensive for holders of other currencies, which can dampen demand.
With information from Reutersyes
Source: Larepublica
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