Here's why the upcoming OPEC meeting will be a 'pivotal' moment as tensions simmer between Russia and Saudi Arabia over global oil supply
, and Riyadh is growing annoyed, according to a report in the Wall Street Journal this week.
The report said the country's budget needs international oil prices to stay above $81 a barrel. Currently, Brent crude is hovering around $75.70 a barrel, and that's even after prices have gained in recent days as the US debt ceiling deal neared the finish line and US employment surprised to the upside in May.
With prices under pressure, sources say it is possible that Saudi Arabia demands further cuts on Sunday. But Russia is unlikely to agree to that given its claim that it is already abiding by the voluntary move to slash output by 500,000 a day barrels earlier in the spring. It also badly needs the money, as energy exports are its biggest lifeline in funding its war on Ukraine.
The June 4 meeting comes at the start of summer driving season for many countries, as well. In the US, gas prices rose about $0.03 per gallon over the Memorial Day weekend as Americans hit the road. After the previous round of OPEC cuts, analysts predicted that pain at the pump would be felt as the year went on with millions of barrels a day removed from the market. Any decision on supply this weekend could impact drivers for the rest of the year.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
OPEC+ prepares for weekend meeting after Saudi warns speculators to 'watch out'Saudi energy minister Prince Abdulaziz bin Salman has urged oil market speculators to 'watch out.'
Leer más »
OPEC excludes some WSJ, Reuters and Bloomberg reporters from meetingThe OPEC+ alliance meets to discuss further production policy steps in Vienna over June 3-4.
Leer más »
For oil traders, OPEC+ meeting won't hold element of surpriseA meeting by major oil producers on Sunday will lack the element of surprise, two months after an unexpected decision to implement deeper production cuts.
Leer más »
WTI retreats towards $70.00 amid pre-NFP consolidation, OPEC+ concernsWTI crude oil fades upside momentum around $70.00 during early Friday in Asia, after rising the most in one month the previous day. In doing so, the O
Leer más »
Oil prices rise as market awaits possible OPEC+ cutsOil prices rose on Friday in early Asian trade as markets weighed the likelihood of price-supportive OPEC+ production cuts over the weekend amid positive sentiment over U.S. monetary policy and Washington's debt ceiling bill.
Leer más »