(CercleFinance.com) – OPEC+ announced on Monday that it had reached an agreement providing for a reduction in oil production, which logically resulted in a firming up of oil prices.
The Organization of the Petroleum Exporting Countries and its allies said in a statement today that the September production target of approximately 100,000 barrels per day (bpd) will not be extended in october.
For the teams of ADSS, a brokerage company based in Abu Dhabi, this announcement aims to stem the recent decline in oil prices caused by the slowdown in global growth, the war in Ukraine and the persistence of the Covid-19 epidemic. 19 in China.
The markets reacted by returning to buying black gold and the price of a barrel of American crude oil gained 3.6% following this announcement to go back above the 90 dollar mark.
“This bullish momentum could continue over the medium term, with the production cuts decided by OPEC+ showing that the coalition is more concerned about the risks associated with a deterioration in demand”, underlines ADSS.
‘Looking ahead, traders will also need to keep an eye on any developments regarding the price cap G7 countries are currently applying to Russian oil,’ the broker points out.
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