Source: Forex Analysis
Today, Brent crude quotes crashed to $ 58.40 a barrel, losing more than 5% of the cost. Futures for WTI crude oil also fell by about 5%, falling to around $ 50.23 a barrel. This dynamic was the result of the reaction of the markets to the meeting of OPEC representatives in Vienna.
Saudi Arabian Energy Minister Khalid al-Falih said that there are no agreements for the next year in the framework of the OPEC + deal, but various proposals are being considered. The minister also noted that currently the organization plans to reduce production in the range of 0.5 million barrels per day to 2 million barrels per day. Al-Falih considers a reduction of 1 million barrels to be the optimal decrease in production. At the same time, the minister called for extending the agreement by more than six months.
Speech by the Saudis caused a negative market reaction, because before that the media had higher figures, namely, a reduction of 1.3 million barrels per day.
The material has been provided by InstaForex Company – www.instaforex.com