Profit taking following OPEC + decision which came in line with expectations
As previously announced, OPEC + will continue its cooperation and slightly increases the production target in September, namely by 100 thousand. barrels per day. Earlier, the price of crude oil was rising due to the low chances of a concrete move from OPEC +. Following the publication of this decision, we are witnessing a profit taking. It is worth noting, however, that raising the production limit will not really reduce the huge deficit. The next OPEC + meeting is scheduled for September 4.
OPEC + in a statement also points out that some countries have experienced problems with increasing production, and stresses that the lack of major investment could lead to a shortage of supply in the coming years.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appAdditionally, it is worth remembering that in October the United States will stop releasing strategic reserves, which will reduce the supply by about 1 million barrels per day. Moreover, greater consumption of petroleum products in Europe during the winter period can be expected due to gas shortages. Therefore, the negative factors for oil may soon end, although concerns about economic growth are certainly the biggest drag.
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
