What the markets had already foreseen, and partially discounted, has promptly happened. Despite pressure from the United States and other Western countries over recession and inflation fears, the Organization of the Petroleum Exporting Countries and its allies led by Russia agreed a big cut in production of two million barrels of Petroleum per day. They report it Bloomberg e Wall Street Journal citing as sources delegates of the Opec + present at the meeting in Vienna, after there had already been talk in the last few hours of a substantial cut in output to support crude oil prices.
Oil: the risks of maxi cuts
The agreement on big cut was reached at the Vienna summit which took place face-to-face for the first time since March 2020 and which for the Russia attended by Aleksandr Novak, vice premier of the Russian Federation with responsibility for the energy sector.
This is the major OPEC+ production cut established from 2020, that is to say from the toughest moment of the Covid emergency. The decision risks drastically compressing the global supply of Petroleum and to make the international oil price soar again.
A scenario that the United States and many EU countries had tried in every way to avoid putting pressure on the OPEC+ countries to retrace their steps. The US, in particular, had tried to convince Saudi Arabia and the United Arab Emirates, urging them to fight for a confirmation or even an increase in crude oil production. Instead, the exact opposite has happened, with US newspapers now talking about “slap in the face of the White House”.
Oil prices fly
The market had already anticipated the move with a rally in Brent and Wti prices, which are taking a breather today. At 17 (Italian time), December Brent crude futures reached 91,95 dollars a barrel (+0,16%). US West Texas Intermediate (WTI) crude futures for November are trading 0,7% lower at USD85,9 a barrel.
