prices jump in the face of a hypothetical drop in production in sight

Europe 1 with AFP

Bad news for motorists. Oil prices jumped more than 3% on Monday in Asian markets. This increase is explained by the possibility of a drop in production by OPEC+ member countries. The 13 members of the organization are due to meet in Vienna on Wednesday.

Oil prices jumped more than 3% on Monday in Asian markets, pushed by the possibility of a production cut of around one million barrels per month, from the Organization of Petroleum Exporting Countries. and its allies (OPEC+). The barrel of American West Texas Intermediate (WTI) gained 3.3% to 82.12 dollars. The same rise for the price of a barrel of Brent from the North Sea, which reached 87.94 dollars.

The two global crude benchmarks have fallen sharply in recent months amid falling demand caused by the recession hitting major economies. OPEC + will meet physically in Vienna, headquarters of the cartel of oil producers, on Wednesday, “for the first time since March 2020” and the emergence of the Covid-19 pandemic, the alliance announced in a press release on Saturday.

Fears of a recession

Representatives of the thirteen members of the Organization of Crude Exporting Countries (OPEC), led by Saudi Arabia, and their ten allies led by Russia, meet amid rumors of major production cuts in the face of fears of recession. Before the pandemic, producers met twice a year in the Austrian capital.

But since the spring of 2020, the 23 members have been meeting every month, by videoconference, to better refine their objectives in the face of the volatility of demand. “It will only be a matter of time before oil returns to $100 a barrel, especially with supply tightening towards the end of the year,” said DBS analyst Suvro Sarkar. Bank, which expects further gains.