Oil prices are waiting for the OPEC meeting
2022.12.02 09:54
Oil prices are waiting for the OPEC meeting
Budrigannews.com – The price of oil fell on Friday, but it is assumed that they will have another good week before the OPEC meeting this weekend, and the EU will begin to ban the import of Russian oil. By 09:15 Eastern time at 14:15 GMT, the contract rose by 0.6 to $ 86.32, futures rose by 0.5 to $ 80.83 per barrel.
According to the data published on Friday, the labor market in the United States remained stable as jobs continued, although the growing trends towards layoffs across the country increased by 263 thousand by the middle of the month, far exceeding the 200 thousand predicted by consensus, by much. Also, the number in October was revised by 23 thousand, which reflects an increase of 284 thousand.
If we take into account the stability of the labor market, traders believe that the US will continue to aggressively tighten the monetary policy, which helped the dollar to grow. Since August, the index comparing the dollar and a basket of six other currencies has declined by 0.4 to 105.148.
Crude oil, priced in dollars, costs more to foreign buyers when the dollar is stronger. However, after three consecutive weekly falls, both crude oil benchmarks reached their first weekly dynamics, the largest in two months and amounted to about 5.5 and 3, respectively, as well as about 5.5 and 3.
Optimism that China, the world’s largest oil exporter, is seeking to ease its extremely tight restrictions on movement because he is fighting AIDS at almost record levels, led to substantial profits within a week. After mass protests against strict restrictions, quarantine cancellations have already begun in several cities, which will potentially increase the country’s economic growth, and at the same time the demand for oil and raw materials.
The OPEC meeting with the oil exporting countries, known as OPEC, is now the focus of the crude market. The group is likely to keep its promise to reduce oil production by $2 million per day, published last month, but the decision is still subject to some uncertainty.
According to Bloomberg, OPEC production decreased slightly more than a million barrels per day than in the previous month. “The formation of preliminary OPEC production data for the November year is beginning, and it is not surprising that the group significantly reduced production over the month due to the recently agreed production,” ING analysts said in a statement.
“With the recent weakness in prices, there is the potential for further contraction,” the group said. “The group is going to meet on Sunday.” The news that the European Union is approaching the conclusion of an agreement on limiting the prices of oil exports to Russia to $ 60 per barrel increases uncertainty.
On Monday, the European Union will ban the import of oil from Russia to the Russian bloc. Cost restrictions will not allow an outsider to receive basic services, for example, delivery and protection from European organizations in case the buyer agrees with higher costs for the transportation of goods from Russian unrefined products.
The deal at $60 per barrel is still higher than what Russia is getting for its oil now. As a result, if it reaches this level, at present it will not greatly affect Russian oil revenues,” ING added.
