Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

Oil Prices Mixed as Markets Digest OPEC+ Supply Cut

Commodities Sep 05, 2022 08:23PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
LCO
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
-1.78%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LGO
-2.42%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Ambar Warrick 

Investing.com-- British and U.S. oil futures diverged on Tuesday after the OPEC+ said it will trim production levels to offset a drop in prices amid fears of slowing demand and economic growth.

London-traded Brent Oil Futures fell 0.1% to $95.12 a barrel by 20:17 ET (00:17 GMT), while U.S. West Texas Intermediate futures jumped 2.2% to $88.75 a barrel. Both contracts surged nearly 3% on Monday. 

The Organization of Petroleum Exporting Countries and its allies led by Russia (OPEC+) said during a meeting on Monday that it will cut output by 100,000 barrels per day (bpd) for October - roughly 0.1% of global demand.

The move comes shortly after the cartel raised supply to pre-COVID levels this year. But fears of slowing economic growth across the globe have battered oil prices in recent months. 

Saudi Arabia, which leads OPEC+, had flagged a potential supply cut to offset weakness in prices. The cut was in response to speculation over a renewed nuclear deal between the U.S. and Iran, which is expected to release over 1 million bpd of supply into the market. 

Crude prices tumbled between $4 and $7 last week after weak manufacturing data from China, as well as signs of slowing economic growth in the U.S. Expectations of the Iran nuclear deal also rattled prices.

Oil prices are down substantially from 14-year highs hit earlier in the year, as concerns over slowing crude demand offset supply shocks from the Russia-Ukraine conflict.

But prices may be set for more relief, especially as gasoline demand improves in the U.S. An energy crisis in Europe, driven by a gas shortage due to Russia’s shutdown of a major pipeline, is also expected to drive up demand for heating oil in the winter months. 

London-traded London Gas Oil Futures surged nearly 3% after Russia’s move.

Oil Prices Mixed as Markets Digest OPEC+ Supply Cut
 

Related Articles

Energy & precious metals - weekly review and outlook
Energy & precious metals - weekly review and outlook By Investing.com - Nov 27, 2022 7

By Barani Krishnan Investing.com - When you hear it from Jim Cramer, you know enough people are talking about it. From oil-producing nations to day traders who are long crude,...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Sol Wein
Sol Wein Sep 05, 2022 9:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Instead of a feast bumb our old Joe got fisted. Enjoy it
Barani Krishnan
Barani Krishnan Sep 05, 2022 9:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It shows how clueless you are.
Brad Albright
Brad Albright Sep 05, 2022 9:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What is a feast bumb?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email