The OPEC+ oil cartel’s member countries surprised the markets with an unexpected production cut announcement early this week, causing a surge in crude oil prices. The cuts were a “precautionary measure aimed at supporting the stability of the oil market,” OPEC+ said.
Last Wednesday, the countries of the OPEC+ oil alliance decided on a comprehensive reduction in oil production. As early as November, 2 million barrels less per day will be produced. Many countries fear a rise in oil prices.
Hopes were pinned on a significantly higher increase to put the brakes on the soaring oil prices. At present, it is mainly the oil companies that are benefiting from this, as they recently reported record profits.
Crude oil prices continued to soar in the past week. The background to the oil price increases lies in the rising demand for oil combined with the ongoing economic recovery and fears of tight supply. The price surge in recent days was triggered by a drop in oil reserves reported by the US government on Wednesday.
Whether you want to buy a house or buy a car, many private consumers currently deal with soaring prices for materials and unpleasantly long delivery periods. This situation is directly reflected in commodity prices.
The rise in oil and energy prices is fueling concerns about a burgeoning inflation. Behind the failure of the latest OPEC negotiations is also a political competition for influence and power in the Gulf region.
The eyes of the international business world are currently fixed on Vienna. At the OPEC headquarters in downtown Vienna, the oil cartel’s member states and its allies are currently haggling over production volumes, and thus the further development of oil prices, via video conference.
The oil market won’t escape the corona virus unscathed either. Within only two weeks, oil recorded its best and its worst day of the millennium so far.
When I think back to my first school outing to the refinery in Schwechat (Lower Austria), the first thing that comes to mind are the excellent wiener sausages at the canteen. The highly complex processes involved in the refinement of crude oil, on the other hand, are hard to digest even for an adult. Divesting […]
What has occurred over the weekend ? On Friday and also over the weekend some movement happened in the talks between Russia and Saudi Arabia about possible oil production cuts. After the last talks of OPEC+ about a month ago ended without an agreement between those two countries Saudi Arabia increased the oil production unilaterally. […]
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