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Oil drops ahead of OPEC+ policy meeting

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Miguel A. Rodriguez
Miguel A. Rodriguez
04 October 2021
The Organization of the Petroleum Exporting Countries left its mark once again on oil prices

On Monday, OPEC and its allies will reach a consensus on how much oil to release into the market, as supply disruptions and recovering demand pushed the prices above the $80 per barrel mark.

Oil price rallying to a three-year high could be even more significant as the gas prices increased 300%. The latter came closer to trade at an equivalent of $200 per barrel due to supply and production shortages of other fuels.

In July, OPEC+ agreed to boost output by 400,000 barrels per day (BPD) every month until April 2022 to phase out 5.8 million BPD of existing cuts. Despite the ongoing setbacks caused by the new wave of COVID-19 infections, the earliest increase is in November, as the previous meeting decided on October volumes.

At the beginning of this week, October 4th, Brent oil was down 0.2% to $79.14 per barrel, ending last week up 1.5%. After marking gains for the past six weeks, Crude oil dropped 0.2% to $75.73 a barrel.

Source: reuters.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.