2024-09-08 22:05:08
OPEC+ changed course and decided to wait two more months to restart production. The number of barrels put on the market each day should increase only from December and not from October. But demand is so sluggish that even this decision has not shaken the barrel price of crude oil.
OPEC+, which brings together 22 members today, has planned to reopen the taps from October with the idea of putting 2.2 million barrels a day back on the market within a year.
But the summer has passed by and the relaunch of the use driven by the holidays and what is called in the United States the ” driving time » has failed to recover crude prices. WTI, the benchmark for American oil, fell below $70 and Brent, the European benchmark for black gold, reached its lowest level since December 2023 in early September. of the cartel (theSaudi ArabiaRussia,IraqTHE United Arab EmiratesKuwait, Kazakhstan, Algeria and Oman) to not reopen the floodgates once decided.
Negative economic signals
The economic rationale prevailed but failed to give a boost to the market. On the contrary, because the reduction of prices continued after the announcement of the cartel. Prices were also not affected in recent days by the announcement of a large decline in American stocks. Perhaps because it was weaker than expected or because the reduction in the amount of gasoline delivered to the American market at that time has prevailed in people’s minds.
Indications of weak demand in the United States echo slower global consumption, linked to a deterioration in economic conditions. Especially in China, the main driver of growth is oil demand.
We have a double-edged sword
The evolution of usage is so uncertain that the organization has already reserved to revise its new calendar if necessary.
This OPEC + policy, focused on the increase in prices, challenges the observers: by keeping your oil underground, ” the organization is losing market share to other countries that are not members of the cartel, such as the United States and new players, such as Brazil or Guyana”noted Hamad Hussain, analyst at Capital Economics, cited by AFP.
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