(BFM Bourse) – The prices of the two global benchmarks for black gold increased this Monday while Saudi Arabia and Russia decided to continue their production and export cuts.
Oil is rising again this Monday, supported by recent announcements from Saudi Arabia and Russia on their production of black gold. The January contract on North Sea Brent gained 1.5% to 86.14 dollars per barrel, while that of December on WTI listed in New York appreciated by 1.6% to 81.79 dollars per barrel. barrel.
This upward movement was triggered by Saudi Arabia, which to finance colossal investments, will once again act on supply by maintaining the extension of its production cuts, to the extent of one million barrels per year. day, until the end of the year.
For its part, Moscow has indicated that it will maintain the reduction in its oil exports by 300,000 barrels per day until the end of 2023.
“The statements from both countries indicate that the reductions will be reviewed next month to decide whether to extend them, intensify them or eliminate them depending on market conditions,” specifies Giovanni Staunovo, analyst at UBS quoted by the AFP.
Economic activity at half mast
The announcements from Russia and Saudi Arabia are giving some color to oil prices. They fell 2% on Friday as the market brushed aside the risk of an extension of the conflict in the Middle East. Meanwhile, global economies are starting to show signs of running out of steam, as in Europe, where economic activity remained in a contraction zone in October.
But for all that, prices “have returned to their level before the Hamas attack on Israel on October 7, while fears of a disruption of supply by the conflict in the Middle East have subsided”, underlines John Plassard, analyst at Mirabaud quoted by AFP.
Regarding supply, the extensions decided by Saudi Arabia and Russia will accentuate the deficit on the supply side for the fourth quarter, a shortage on which the International Energy Agency and the Organization of oil exporting countries (OPEC) had already warned last September.
According to the US Department of Energy, Saudi Arabia and Russia were the second and third largest oil producers in the world in 2022, representing a quarter of global production.
Sabrina Sadgui – ©2023 BFM Bourse