Moscow will reduce its oil production, the barrel jumps


Strong acceleration of the barrel of oil…






Photo credit © TotalEnergies


(Boursier.com) — Strong acceleration of the barrel of oil. Oil prices jumped late morning after Russia said it would cut oil production by 500,000 barrels a day next month in retaliation for Western sanctions. This drop, which is equivalent to about 5% of January production, had been mentioned several times by the Kremlin since the European Union and the G-7 began to discuss the price cap of Russian exports.

“Russia believes that the price cap mechanism for Russian oil and petroleum products is an intervention in market relations and an extension of the destructive energy policies of the collective West,” Deputy Prime Minister Alexander Novak said on Friday. in a press release.

Moscow’s decision risks further reducing the supply of crude as OPEC and its allies recently confirmed a drop in production of 2 million barrels per day. At a Committee meeting earlier this month, the group’s ministers did not consider it necessary to change their production quotas. The cuts are in principle to last until the end of 2023.

Moscow’s announcement led to a reversal of the bearish sentiment that had characterized the market since Thursday on fears of recession in the United States and weak demand data in China. Goldman Sachs also lowered its Brent price forecast for 2023 to $92 a barrel, from $98 previously, and its 2024 forecast to $100, from $105.

The barrel of Brent from the North Sea (April deadline) gained 2.4% to $86.5 in London while the WTI (March delivery) gained 2.3% to $79.9 on the Nymex. The two benchmarks are posting a weekly gain of more than 8% at the moment and are thus erasing their losses from the start of the year.


©2023 Boursier.com






Source link -87