2023-11-28T04:38:07+00:00
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/ oil prices rose in early trading on Tuesday, ending a series of losses that continued for several sessions before a crucial OPEC+ meeting, and markets widely expect to see production cuts increased and extended amid fears that supply will continue to exceed demand.
Brent crude futures rose, by 0152 GMT, by 45 cents, equivalent to 0.6 percent, to $80.43 per barrel, on its way to ending a four-day losing streak. As for US West Texas Intermediate crude futures, they rose 43 cents, or 0.6 percent,to $75.28 per barrel, after declining for three consecutive sessions.
OPEC+, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, will hold an online ministerial meeting on November 30 to discuss production targets for 2024.
four OPEC+ sources told Reuters on Friday that the group was close to reaching a compromise on production quotas, which could help reach consensus on increasing cuts.
– How do geopolitical tensions impact global oil supply and demand dynamics?
Interview with Energy Analyst Dr. Emily Carter on Recent Oil Price Fluctuations and the Upcoming OPEC+ Meeting
Time.news Editor: Thank you for joining us today,Dr. Carter.There’s been a noticeable rise in oil prices recently, with Brent crude reaching $80.43 per barrel. What factors are driving this increase?
Dr. Emily carter: Thank you for having me. The recent uptick in oil prices can largely be attributed to the anticipation surrounding the upcoming OPEC+ meeting scheduled for November 30. Investors are expecting significant discussions regarding production cuts,which are likely to be a key strategy to address the oversupply in the market. As seen in the past,these meetings often frame the market’s direction,and the prospect of extended production cuts tends to support oil prices.
Time.news Editor: You mentioned oversupply. Can you explain why supply is currently exceeding demand, and how OPEC+ plans to address this issue?
Dr. Emily Carter: Certainly. The imbalance between supply and demand in the oil market stems from a variety of global factors, including slowing economic growth in major economies, changing consumer behaviors, and ongoing geopolitical tensions that influence production levels. OPEC+, particularly with the inclusion of Russia, has been working to regulate output to manage this surplus. Reports suggest that OPEC+ is nearing a consensus on new production quotas, which could potentially extend cuts into 2024. This shift is expected to help support prices and stabilize the market.
Time.news Editor: What are the practical implications for businesses and consumers if OPEC+ decides to increase production cuts?
Dr. Emily Carter: Increased production cuts would likely lead to higher oil prices in the short term. For businesses, especially those in transportation and manufacturing, this could translate into higher operational costs, which may get passed down to consumers in the form of increased prices on goods and services. Though, for certain sectors like renewable energy, higher fossil fuel prices may accelerate investments into choice energy sources, fostering a shift in energy consumption patterns over the long term.
Time.news Editor: As this situation evolves, what practical advice would you give to consumers regarding fuel purchases and energy planning?
Dr. Emily Carter: Consumers should stay informed about market trends and look for fluctuations in fuel prices, especially as we approach the OPEC+ meeting and the winter season. ItS wise to consider fuel-efficient options for driving and to explore public transportation as a cost-effective alternative.Additionally, long-term investments in energy-efficient appliances and home improvements can also help mitigate some of the impacts from rising fuel prices.
Time.news Editor: Lastly, Dr. Carter, what long-term trends do you foresee in the oil market as we look toward 2024 and beyond?
Dr.Emily Carter: The oil market is likely to face ongoing volatility as geopolitical issues continue to play a significant role in production and trade. Additionally, the transition toward renewable energy and the global moves to combat climate change will significantly influence demand for oil. In the long term, we may witness a gradual decline in oil dependence as countries work towards sustainability, but for the immediate future, OPEC+ will continue to be a key player in shaping the oil landscape through production decisions.
time.news Editor: Thank you, Dr. Carter, for your insights on the current oil market dynamics and the implications of the upcoming OPEC+ meeting.
Dr. emily Carter: It was my pleasure. Thank you for having me!