Oil prices continued to rise on Friday ahead of the production meeting of oil cartel OPEC+ next Sunday. The alliance of major oil-producing countries such as Saudi Arabia and Russia is not expected to fumble with policy again after the unexpected further production cuts in April.
A barrel of US WTI oil (159 liters) rose 1 percent to $ 70.86 and Brent, the benchmark for oil from Europe, the Middle East and Africa, now costs about $ 75 a barrel. Earlier this week, prices rose sharply on markets’ relief over the increase in the US debt ceiling. There is still a drop in prices throughout the week.
Reduction
OPEC+ decided in April to cut production by more than a million barrels per day from May, on top of previous production cuts. With this, the alliance wants to prop up prices. Oil prices are under pressure due to the disappointing economic recovery in China after the country’s release of corona restrictions and the uncertainty about the global economy and interest rate hikes by central banks. Since the beginning of this year, the oil price has fallen about 12 percent.
But there is never certainty about the steps of OPEC+. For example, the oil minister of Saudi Arabia recently warned traders and speculators to ‘watch out’. The Kremlin said on Thursday that relations with Saudi Arabia are “constructive, based on mutual trust and respect.”
Price at the pump
OPEC+ policies also affect prices at the pump. In April, the recommended price for a liter of Euro95 rose again to just above 2 euros after the oil cartel’s production decision. Now that suggested retail price is 1,962 euros. For diesel that is 1,642 euros per litre. Gas station owners can, however, deviate from the recommended prices of the large oil companies. Motorists usually only pay those prices along the highway. Prices are often lower elsewhere.
