Oil Prices Sharply Up Due to Expected Production Cut OPEC+

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Oil prices rose sharply on Monday due to the expectation that the oil alliance OPEC+ will cut production hard to prop up prices. Media reports show OPEC+ could cut production by more than a million daily barrels.

The price of a barrel of American WTI oil (159 litres) rose by 4.7 percent to $ 83.16. Brent, the benchmark for oil from Europe, the Middle East and Africa, rose 4.3 percent to $88.79 a barrel.

OPEC+ will meet on Wednesday in the Austrian capital Vienna to discuss production in November. That meeting will be physical again for the first time since March 2020. OPEC+ consists of 23 countries, with the main members Saudi Arabia and Russia. The group agrees on how much oil each country can pump up to influence prices.

Recently, oil prices have fallen sharply due to concerns about an economic recession and weakening oil demand. However, earlier this year, there was a sharp rise in oil prices due to the war in Ukraine and strong demand.

The European gas price fell by as much as 7 percent on Monday on the leading gas exchange in Amsterdam. European countries are saving gas in order to make up for the almost stopped deliveries by Russia. In addition, Norway is increasing gas supplies to Western Europe.