WTI $88.45, Brent $94.42, Dubai $93.31
[이투뉴스] International oil prices rose for the fourth trading day on the 5th following large-scale production cuts by OPEC+.
According to the Korea National Oil Corporation on the 6th, West Texas Intermediate (WTI) futures rose $0.69 from the previous day to $88.45 a barrel, and North Sea Brent futures rose $1.05 to $94.24 a barrel. Spot Dubai crude also closed at $93.31, up $2.09 from the previous day.
Oil prices continued to rise as OPEC+ decided the previous day to cut production by 2 million barrels per day, the most since May 2020, until next year. However, with the exception of Saudi Arabia, the United Arab Emirates and Kuwait, member countries’ production is below the quota, so the actual production cut is expected to be 1 million to 1.1 million barrels.
The US response to production cuts also contributed to the increase in oil prices. Immediately after OPEC+’s decision to cut production, major investment banks simultaneously raised their forecasts for the rest of this year and next year’s international oil price (Brent).
Goldman Sachs, a US investment bank, raised its oil price forecast for the fourth quarter of this year from $10 to $110 and for the first quarter of next year from $10 to $115. The overall forecast for this year is also raised by $5 to $104, and the forecast for next year is also raised by $2 to $110.
Morgan Stanley also raised its oil price forecast for the first quarter of next year by $5 to 100 barrels.
Meanwhile, right after OPEC+’s decision to cut production, US President Biden expressed great dissatisfaction with the decision and said he would prepare countermeasures such as releasing additional oil reserves.
By Kim Dong-hoon, hooni@e2news.com staff reporter
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