6 October 2022 | Other

Oil continues to rise as OPEC+ countries cut production

Following decision OPEC+' to cut oil supplies even further in the context of an agreement to cut production by about 2 million bpd, oil prices continued to rise.

Now the supply of oil has been reduced, the decision made, in turn, will worsen the situation, which will lead to higher inflation.

Abdulaziz bin Salman, Saudi Arabia's energy minister, said the supply cuts are a reaction to rising interest rates in the Western countries and the worldwide weakening of the economy, and will actually reach about 1-1.1 million bpd.

Citi analysts said in a note that the impact of the decision on the market depends on the length of time the agreement is in place. For now, OPEC+ has extended its Declaration of Cooperation until the end of 2023. Analysts also added that the reduction in supply will keep the level of global stocks longer.

According to the statement of the Energy Information Administration, last week's decline in U.S. oil inventories also supported prices; crude oil reserves fell 1.4 million barrels in the week to September 30, to 429.2 million barrels.

Company MarketCheese
Period: 13.06.2026 Expectation: 1000 pips
Go long on USDCAD with 1.38800 target in play
Today at 10:48 AM 14
Period: 20.05.2026 Expectation: 100 pips
Natural gas prices are correcting within upward channel ahead of another rally
Today at 09:39 AM 11
Period: 20.05.2026 Expectation: 1000 pips
Investing in NVIDIA stock with $230 in sight
Today at 09:06 AM 10
Period: 20.01.2028 Expectation: 500 pips
Hot US inflation and geopolitical jitters weigh heavily on EURUSD
Today at 06:26 AM 15
Period: 12.06.2026 Expectation: 4700 pips
Invest in Bitcoin up to $86,000
Yesterday at 10:09 AM 32
Period: 31.05.2026 Expectation: 1900 pips
Buying GBPUSD on low US inflation
Yesterday at 09:54 AM 35
Go to forecasts