The price of crude oil rose and fell over mixed messages about a potential decision by the OPEC+ group to increase production.
It began when the Wall Street Journal cited anonymous OPEC delegates as reporting that an increase of half a million barrels per day (bpd) was being mooted ahead of the upcoming meeting of the OPEC+ group. Despite being unusual for the group to increase production when crude oil prices were declining, the price of Brent Crude dropped briefly to $82.63 per barrel.
The report was quickly disputed, however, when SPA, the official Saudi news agency, quoted Prince Abdulaziz bin Salman, the energy minister for Saudi Arabia, as saying that OPEC+ does not discuss potential decisions before the actual meeting. He even hinted that if anything, the group may consider reducing production further, saying:
“The current cut of 2 million barrels per day by OPEC+ continues until the end of 2023 and if there is need to take further measures by reducing production to balance supply and demand we always remain ready to intervene.”
Oil has recently been trading below $90 per barrel, which many believe is the target price for OPEC+, mostly due to economic concerns and rising COVID-19 cases in China.
While the price of crude oil inevitably affects the price of derived products like lubricants, here at TrAchem, we can help mitigate this by offering suitable solutions from multiple brands—such as the Mobil DTE, Castrol Hyspin, and Shell Tellus hydraulic fluids—to ensure you get a great price.