Monday’s decision by energy ministers means the cut for October reverses the essentially symbolic increase of the same amount in September. The move follows a statement last month by Saudi Arabia’s energy minister that the group could cut production at any time.
Oil producers such as Saudi Arabia have resisted US President Joe Biden’s calls to pump more oil to lower gasoline prices and burden consumers.
But worries about collapsing future demand have helped push prices down from June highs of over $120 a barrel, reducing windfall for government budgets in OPEC+ countries, but s proving a blessing for drivers in the United States, as prices at the pumps have fallen.
Energy ministers said in a statement that the September increase was only for that month and the group could meet again at any time to discuss market developments.
Other factors are on the prowl that could influence the price of oil. On the one hand, the main democracies of the Group of Seven are considering imposing a price cap on imports of Russian oil and what effect this could have on the market. The price level of the cap has not yet been set.
Meanwhile, an agreement between Western countries and Iran to limit Tehran’s nuclear program could ease sanctions and see more than a million barrels of Iranian oil return to the market in the coming months. However, tensions between the United States and Iran seem to have increased in recent days: Iran seized two American naval drones in the Red Sea, and American, Kuwaiti and Saudi warplanes flew over the Middle East on Sunday. in a show of force.
Oil prices have been swirling in recent months: fears of recession have pushed them down, while fears of a loss of Russian oil due to sanctions related to its invasion of Ukraine have pushed them up.
Recently, recession fears have taken over. European economists are eyeing a recession at the end of this year due to soaring inflation fueled by energy costs, while China’s tough restrictions aimed at halting the spread of the coronavirus have undermined the growth of this great world economy.
This drop in oil prices has been a boon for American motorists, sending gasoline prices down to $3.82 a gallon from record highs of over $5 in June.
That month, fears that US and European sanctions would pull Russian oil off the market helped push Brent to above $123. These concerns are still relevant as European sanctions targeting Russian oil shipments will not come into force until the end of the year.
Monday’s decision by energy ministers means the cut for October reverses the essentially symbolic increase of the same amount in September. The move follows a statement last month by Saudi Arabia’s energy minister that the group could cut production at any time.
Oil producers such as Saudi Arabia have resisted US President Joe Biden’s calls to pump more oil to lower gasoline prices and burden consumers.
But worries about collapsing future demand have helped push prices down from June highs of over $120 a barrel, reducing windfall for government budgets in OPEC+ countries, but s proving a blessing for drivers in the United States, as prices at the pumps have fallen.
Energy ministers said in a statement that the September increase was only for that month and the group could meet again at any time to discuss market developments.
Other factors are on the prowl that could influence the price of oil. On the one hand, the main democracies of the Group of Seven are considering imposing a price cap on imports of Russian oil and what effect this could have on the market. The price level of the cap has not yet been set.
Meanwhile, an agreement between Western countries and Iran to limit Tehran’s nuclear program could ease sanctions and see more than a million barrels of Iranian oil return to the market in the coming months. However, tensions between the United States and Iran seem to have increased in recent days: Iran seized two American naval drones in the Red Sea, and American, Kuwaiti and Saudi warplanes flew over the Middle East on Sunday. in a show of force.
Oil prices have been swirling in recent months: fears of recession have pushed them down, while fears of a loss of Russian oil due to sanctions related to its invasion of Ukraine have pushed them up.
Recently, recession fears have taken over. European economists are eyeing a recession at the end of this year due to soaring inflation fueled by energy costs, while China’s tough restrictions aimed at halting the spread of the coronavirus have undermined the growth of this great world economy.
This drop in oil prices has been a boon for American motorists, sending gasoline prices down to $3.82 a gallon from record highs of over $5 in June.
That month, fears that US and European sanctions would pull Russian oil off the market helped push Brent to above $123. These concerns are still relevant as European sanctions targeting Russian oil shipments will not come into force until the end of the year.