Saudi Arabia pushed Brent crude prices above $100 a barrel, cutting production just as global demand for the fuel reached record levels, according to data from Rapidan Energy Group. According to Rapidan, this could soon be enough for the kingdom to start increasing oil production again, writes Bloomberg.
"They don't want to intentionally overstress the market, because if you get a spike, you get a collapse in demand, and you get a crash," said Bob McNally, a former White House official.
According to McNally, global oil markets are "under severe pressure", especially for fuels such as diesel and fuel oil, as peak winter consumption approaches. Given the particularly fragile economic situation in the world, this creates a danger for central banks such as the Federal Reserve System, he added.
Riyadh has pledged to maintain an additional supply cut of 1 million barrels per day until the end of 2023, along with an export cap from OPEC+ neighbor Russia.
The Organization of the Petroleum Exporting Countries and its partners will hold a market monitoring session next week, followed by a full ministerial meeting in late November to set production policy for 2024.
To always be aware of the most important things, read us at Telegram
