The United States reacted negatively to the decision of Saudi Arabia, which led to an increase in oil prices

On Sunday, the Organization of the Petroleum Exporting Countries and its partners, known as OPEC+, made no changes to their planned cuts in oil production for the rest of the year. However, the world's largest oil exporter, Saudi Arabia, has announced further voluntary production cuts to be implemented from July.

The Saudi Ministry of Energy said Riyadh will implement an additional voluntary one-month production cut of 1 million barrels per day starting in July, which could be extended.

Global Brent crude futures last traded up 1,43% at $77,22 a barrel, while U.S. West Texas Intermediate futures rose 1,5% to $72,86 a barrel. . OPEC+ produces approximately 40% of the world's oil, and production decisions can have a significant impact on prices.

By Monday evening, Brent is already trading at a price above $78.

On April 3, several producers of the oil conglomerate reported a cumulative 1,66 million bpd decline in production through the end of this year. And many experts expected that this time the alliance will keep the volume of production unchanged.

OPEC+ also made public in a statement that it will limit cumulative oil production during January-December 2024.

In the United States, the decision of Saudi Arabia, which led to an increase in oil prices, was reacted extremely negatively. After all, rising prices can blur the euphoria of the administration, which is observed there after the actual abolition of the national debt ceiling.

Comments

[tralflot1832]

Let the United States not cry, but increase oil production. Who said that the green energy transition would be cheap and easy. Oil companies are against those that are not subject to the United States.

[nepunamemuk]

an increase in oil prices, on the contrary, is beneficial to the United States
this will be able to spur oil production in the United States itself

[tralflot1832]

Biden is urging him on so much that the oilmen will soon strangle him, you think from what gasoline costs not as much as Biden wants. Again, my grandfather banned the development of a promising oil reservoir in one of the states. Greens rule.

[Fangaro]

Doesn't shale oil have a profitability line?
Maybe wrong, but the higher the weighted average price of a barrel of oil, the higher the profitability of shale production.
About varieties and those characteristics ... Let's not argue at VO?

[igorbrsv]

As far as I understand, the natural market value of oil will tend to $60 per barrel for Brent crude. Below $60 per barrel, the production of shale oil becomes unprofitable, and due to the reduction in production, it begins to rise in price. At a higher cost, there is an excess due to the profitability of shale oil production and it starts to become cheaper. This means that the price can change only from world demand for oil or for a short time due to a reduction in its production. That is, the phenomenon is short-term and entails a decrease in world demand up to a decrease in its price.
This is what I blew. I'll go and wash myself

[Brturin]

reacted negatively ... and who prevents how in the old days to play with the numbers of "unexpected" reserves or the number of drilling rigs, or find a hurricane (storm, etc.) in the Gulf of Mexico
during trading on the ICE exchange in London, the price of a barrel of Brent oil fell to $56,88 per barrel... The fall in prices for black gold takes place against the backdrop of news from the US that the number of operating drilling rigs has increased. Last week, Washington increased their number by 7, to 665 units. https://iz.ru/news/656238
Oil prices fall on Wednesday amid an unexpected increase in US oil and fuel inventories,... US oil stocks in the week of December 31-January 6 jumped by 14,9 million barrels, according to the American Petroleum Institute (API), sources said . At the same time, stocks of distillates, including heating oil and jet fuel, jumped by about 1,1 million barrels. https://1prime.ru/Financial_market/20230111/839440340.html
Oil prices accelerated growth on Thursday, continuing to rise on data about the decline in US energy inventories. https://www.interfax.ru/business/781489
Oil prices rise to six-week highs and continue to rise as a new tropical storm approaches the Gulf of Mexico https://www.interfax.ru/business/790141
etc., etc. did these 7 oil rigs in the states have such a huge impact compared to their number in the world ... or times are changing ...

[Tryams]

and who prevents how in the old days to play with the numbers of "unexpected" stocks

wow, it's all right

[alystan]

The Saudi Arabian Ministry of Energy stated that Riyadh to implement additional voluntary one-month production cuts of 1 million barrels per dayfrom July, which may be extended.

Did Russia's March decision go unnoticed by the hegemon, or was it then preoccupied with its own budgetary problems?

The Russian authorities decided to extend the voluntary reduction in oil production in the country by 500 barrels per day until June 000, Deputy Prime Minister Alexander Novak, who oversees the fuel and energy complex, told reporters on March 2023.

For 2023, Russia's quota is 10478 thousand barrels per day, in 2024 it will be reduced to 9828 thousand (and, taking into account the voluntary reduction, to 9328 thousand).

At the same time, the quota of Saudi Arabia, the largest OPEC country, for 2024 remained unchanged - 10478 thousand barrels.

Overall, OPEC+ countries have agreed to cut oil production levels by about 1,5 million barrels per day next year, excluding voluntary reduction commitments made by individual countries.

The purpose of the cuts is to stop the fall in oil prices on the world market. Therefore, Saudi Arabia probably decided that in order to achieve price growth, it would reduce its production level by an additional 1 million barrels per day for a month.

And do not care that some grandfather is unhappy ...

[tralflot1832]

Grandfather, visiting Salman, behaved inappropriately, he was not only denied the volume of oil, but it seemed that even the escalators were turned off in front of him, in the palace. Let him walk on foot.

[Alister kroulegg]

And do you think the Saudis behaved appropriately when Khashoggi was dismembered alive in the consulate of Istanbul?
The Kremlin would also do well to express concern about this issue.

[Maks1995]

So what?
Every time, once every 2 days, this is presented as some kind of uber-victory.
Although this has been going on since the 90s, when the Arab sheikhs began to play an independent role.
Less production - more cost - more profits for sheikhs.
It's simple.

[Storog dvornik]

Why all of a sudden negative? Everything is natural ... The States once again wagged backwards, and depreciated their dollar, the main oil currency, the producers in response instantly reduced the production of slurry ... The price will accordingly rise exactly on the US financial maneuver, and will maintain the profit margin for producers, there are no fools to save cut paper \ zeros in the computer ... And the oil that is not extracted will lie in the ground - it will be more whole ...

[Tryams]

Another show for the blind herd
to someone, but the United States is only happy about the rise in oil prices
a whole technology of manipulation has been created, which opek cannot fully compensate
it's all about internal reserves, comparable in volume, and the fact that the main consumer is the United States
block imports using the reserve = prices in the world are falling = the United States at this moment is securing contracts, then prices are rising, and they are already selling. And guardianship is also used to their advantage.
and KSA, in addition, buys US government securities with the proceeds of funds = everything is returned
and so on in a circle for how many 10 years
this is ingenious, "a market instrument of blackmail by demand" and you can live on% (this, by the way, shows the value of a large domestic market in international pricing and other policies - the value of people even with stupid consumers, and not just Chances)

[Tryams]

moreover, in the EU they are now making something similar, only for gas
concrete bigwigs, there is nothing to rejoice here - we have a Western cartel and colonies

[Mikhail Krivopalov]

Will the price of petrol go up again? It seems that it has recently gone up in price ... And, which is typical, in the USA a ton costs 53000 rubles with our money, and we already seem to have almost 67000 rubles

[dimbasic]

that's why he and the cartel, to keep prices at the level