Oil prices rise as OPEC+ agrees to large output cut
Published By : Prameya News Bureau | October 06, 2022 IST
Share
New York, Oct 6 (IANS) Oil prices shot up after major producers announced a big production cut. The West Texas Intermediate for November delivery increased 1.24 US dollars, or 1.4 per cent, to settle at 87.76 dollars a barrel on the New York Mercantile Exchange. Brent crude for December delivery added 1.57 dollars, or 1.7 per cent, to settle at 93.37 dollars a barrel on the London ICE Futures Exchange. The Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, on Wednesday decided to reduce production by 2 million barrels a day starting in November. The decision to cut stemmed from "the uncertainty that surrounds the global economic and oil market outlook," the group said in a statement. "The production cut is OPEC+'s reaction to the marked price slide of recent months," and would help rebalance the oil market, Carsten Fritsch, energy analyst at Commerzbank Research, said Wednesday in a note. Concerns about demand amid growing recession risks and the sharp appreciation of the US dollar caused oil prices to fall at the end of September to their lowest level since January. Traders also digested data on US fuel stockpiles. The US Energy Information Administration (EIA) said that the nation's commercial crude oil inventories decreased by 1.4 million barrels during the week ending September 30. Analysts polled by S&P Global Commodity Insights had expected US crude supplies to show fall of 1.5 million barrels. According to the EIA, total motor gasoline inventories decreased by 4.7 million barrels last week, while distillate fuel inventories decreased by 3.4 million barrels.
News7 Is Now On WhatsApp Join And Get Latest News Updates Delivered To You Via WhatsApp
You Might Also Like
More From Related News
Sensex crosses 74K mark in 1000 points rally
Kia unveils K4 compact sedan in US ahead of launch
realme 12x 5G: Pioneering 5G experience under Rs 12K
Adani Ports acquires Gopalpur Port in Odisha for Rs 3,080 crore
MCL becomes first ever company to achieve 200 MT coal production
Over $447 million in funding raised by 22 Indian startups last week
Naveen Jindal takes charge as President of Indian Steel Association
Maruti Suzuki acquires stake in homegrown AI startup Amlgo Labs
Will work to create advanced chip design facility in TN: Zoho's Sridhar Vembu
RBI issues new rules for self-regulatory organisations of banks, NBFCs
Startup Mahakumbh: Rise of entrepreneurs from tier 2, 3 cities big boost to ecosystem
Agency Banks to remain open during Annual Closing on March 31, Sunday: RBI
India records 5.9 pc mineral production increase in January
India now home to over 150 two-wheeler EV startups
Tata Chemicals shares plunge more than 8 per cent
Witnessed 100 pc surge in online business for academic year 2024-25: Physics Wallah
Narayana Murthy gifts Infosys stock worth over Rs 240 crore to 4-month-old grandson
India can create more jobs in esports, game development: CII
Centre to soon have dedicated policy to nurture deeptech startup ecosystem
Adani Group to invest Rs 1.2 lakh crore in FY25 in next phase of growth