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After OPEC+ announced production cuts of about a million barrels daily last week, oil prices jumped, only to ease earlier today as traders took profits.

The nominal size of the OPEC+ production cut was set at 2 million barrels daily but the actual cuts were agreed at between 1 million bpd and 1.1 million bpd, according to Saudi energy minister Abdulaziz bin Salman.

The decision signaled even tighter physical oil markets ahead, pushing oil prices higher, although not as sharply higher as such a decision might have pushed them a couple of years ago when there was little else to affect the movement of prices.

Now, however, fears of a deep recession in Europe, in no small part caused by an energy crunch that began last year, are serving to constrain oil prices from rising too high. Many see demand destruction on the cards for the immediate future, despite banks’ latest price forecasts, most of which see Brent returning to three-digit territory before the year’s end.

Despite the slide at the start of trade this week, oil is palpably higher than a week ago, with Brent at over $97 per barrel at the time of writing and West Texas Intermediate at close to $92 per barrel.

"Profit-taking might be the main reason to pressure the oil prices today after five-day gains last week," one CMC Markets analyst told Reuters earlier today.

Analysts seem to be unanimous that the OPEC+ cuts are bullish for crude although some note that there is still a lot of uncertainty on international markets. Some of that would disappear when the EU embargo on Russian crude comes into effect and when the G7 oil price cap on Russian oil kicks in. However, it is likely that the certainty, which will replace it, will be a certainty of higher oil prices.

After OPEC+ announced production cuts of about a million barrels daily last week, oil prices jumped, only to ease earlier today as traders took profits.

The nominal size of the OPEC+ production cut was set at 2 million barrels daily but the actual cuts were agreed at between 1 million bpd and 1.1 million bpd, according to Saudi energy minister Abdulaziz bin Salman.

The decision signaled even tighter physical oil markets ahead, pushing oil prices higher, although not as sharply higher as such a decision might have pushed them a couple of years ago when there was little else to affect the movement of prices.

Now, however, fears of a deep recession in Europe, in no small part caused by an energy crunch that began last year, are serving to constrain oil prices from rising too high. Many see demand destruction on the cards for the immediate future, despite banks’ latest price forecasts, most of which see Brent returning to three-digit territory before the year’s end.

Despite the slide at the start of trade this week, oil is palpably higher than a week ago, with Brent at over $97 per barrel at the time of writing and West Texas Intermediate at close to $92 per barrel.

"Profit-taking might be the main reason to pressure the oil prices today after five-day gains last week," one CMC Markets analyst told Reuters earlier today.

Analysts seem to be unanimous that the OPEC+ cuts are bullish for crude although some note that there is still a lot of uncertainty on international markets. Some of that would disappear when the EU embargo on Russian crude comes into effect and when the G7 oil price cap on Russian oil kicks in. However, it is likely that the certainty, which will replace it, will be a certai

https://www.livecharts.co.uk/MarketCharts/brent.php

https://oilprice.com/Energy/Crude-Oil/Bidens-Options-To-Counter-OPEC-Are-Limited.html

Thankyou some good news.

We had a new fund enter
That’s why it’s increased
I watch it on a daily basis.

It was 1.26 and it has been increasing.
Look at my posts

Have a great weekend
Onwards and upwards next week:)

97.55

.

This is so strong
Another. Push

Friday, October 7th, 2022

Any doubt about the cohesion of OPEC+ was put to bed this week as the group's summit in Vienna ended with a 2 million bpd production cut. This cut appears to have achieved exactly what the participating members wanted, namely higher oil prices. It appears that fears of a global economic slowdown have taken a back seat to oil market fundamentals and geopolitical uncertainty. Saudi Arabia, the country that will spearhead the production cuts (Russia is already producing at its decreased target), has put the Biden Administration between a rock and a hard place only several weeks before the midterm elections. Confronted with the prospect of rising gasoline prices, the White House needs to react swiftly if it does not want to be seen as weak.

White House Mulls Antitrust Case Against OPEC+. On the back of the OPEC+ 2 million bpd production cut, the Biden Administration threatened to trigger anti-trust action against the alliance, with legal committees in both chambers of Congress approving legislation that would allow the White House to do so.

EU Publishes Eighth Russia Sanctions Package. The European Union issued its new set of sanctions against Russia, including a ban on almost all steel products, a legal basis for a price cap on oil exports to third countries, as well as a further tightening on services involved in the seaborne transport of Russian oil.

Nigerian Oil Theft Gets Creative. Nigeria’s state oil company NNPC said it had discovered an illegal 4-kilometer connection line from the Forcados export terminal into the sea, siphoning off crude undetected for nine years, as part of its clampdown against widespread oil theft.

US to Delineate New Drilling Auctions. In accordance with the IRA act, the US Interior Department started the process of organizing oil and gas drilling auctions in New Mexico, Wyoming, and the Gulf of Mexico, preparing the legal groundwork for the higher royalty rates and price bidding floors.

No Lithium Support for Warren Buffett. The Biden Administration hailed Berkshire Hathaway’s plans to produce lithium from geothermal brines in California’s Salton Sea as a breakthrough for U.S. lithium, however, it subsequently rescinded support for the project after Hathaway sought control over patents.

EVs Might be Generating Renewable Credits. The US Environmental Protection Agency is expected to propose that electric vehicles be eligible for renewable fuel credits, meaning that carmakers such as Tesla (NASDAQ:TSLA) will gain access to a new type of credit known as e-RINs.

Germany In Talks for More Gas Aid. The German government is nearing a deal to provide billions of euros in additional guarantees to SEFE, formerly Gazprom’s German subsidiary now under government trusteeship, to ensure the company can honor its supply commitments to German

https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/investors/bp-financial-calendar-2022.pdf

Profit taking
Looking forward to next week:)

Onwards and upwards
:))))))))

United States is considering “response options” in its relations with OPEC+ members and its de facto leader Saudi Arabia after the group announced a large 2 million bpd nominal cut in its collective oil production target earlier this week, U.S. Secretary of State Antony Blinken said.

“As to the relationship going forward, we’re reviewing a number of response options. We’re consulting closely with Congress,” Secretary Blinken said at a press conference in Peru late on Thursday.

“We will not do anything that would infringe on our interests – that’s first and foremost what will guide us – and we will keep all of those interests in mind and consult closely with all of the relevant stakeholders as we decide on any steps going forward,” Secretary Blinken added.

Asked to comment on the OPEC+ production cut, he said, “We see the decision as both disappointing and short-sighted, especially as we have a global economy that is dealing with the implications of recovering from COVID, as well as the aggression from Russia in Ukraine, the consequences that’s having.”

“We’ve said all along that supply needs to meet demand, and we’ve been clear about that and we’ve been working on that,” Secretary Blinken said.

Following the OPEC+ decision, U.S. National Security Advisor Jake Sullivan and National Economic Council (NEC) Director Brian Deese said in a statement, “The President is disappointed by the shortsighted decision by OPEC+ to cut production quotas while the global economy is dealing with the continued negative impact of Putin’s invasion of Ukraine.”

“In light of today’s action, the Biden Administration will also consult with Congress on additional tools and authorities to reduce OPEC’s control over energy prices,” Sullivan and Deese added.

President Joe Biden has directed the Department of Energy to deliver another 10 million barrels from the Strategic Petroleum Reserve (SPR) to the market next month, they added.

“The President will continue to direct SPR releases as appropriate to protect American consumers and promote energy security, and he is directing the Secretary of Energy to explore any additional responsible actions to continue increasing domestic production in the immediate term.”

Have been increased

I am very very positive
As usual £5 before Christmas.Santa is coming early
:))))))))))))

https://www.livecharts.co.uk/MarketCharts/brent.php

Elsewhere, commodities stocks appealed, with Glencore PLC (LSE:GLEN), BP PLC (LSE:BP.), Shell PLC (LSE:SHEL, NYSE:SHEL), Rio Tinto PLC (LSE:RIO) and Angus Energy PLC (AIM:ANGS).

Aircraft engineer maker Rolls Royce Holdings PLC continues to be well-liked on its hoped-for pandemic recovery prospects, having been top of the pops in August and in the ii top ten for most of the past two and a half years.

Tesla was the most popular stock by value for AJ Bell investors., followed by Lloyds, Glencore, L&G, Barclays PLC (LSE:BARC) and GSK PLC (LSE:GSK, NYSE:GSK).

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