OPEC+ Mulls Crude Production Cut
October 4, 2022
Crude oil futures jumped up over $4 dollars per barrel yesterday as OPEC+ considers reducing output by 1 million barrels per day to support prices. Such a move would represent the biggest production cut since the start of the COVID-19 pandemic. There are other reports that in addition to the 1 million bpd cut by OPEC+ Saudi Arabia could voluntarily cut an additional 1 million bpd.
Despite all the bullishness in the energy markets, there are headwinds facing crude oil as demand continues to fall with weak economic data signaling a slowing economy.
A falling US dollar index and rallying equities markets also helped push prices higher yesterday.
North Korea fired a missile over Japan for the first time in five years, increasing the tension over Kim Jong Un’s nuclear aspirations.