The cost rises against the background of the recommendation of the OPEC + committee to further increase oil production
December Brent futures price exceeded $ 81 per barrel / Photo: Collage: Today
On October 4, the price of North Sea Brent crude oil rose above $ 81 per barrel.
December Brent futures have surpassed $ 81 per barrel for the first time since October 2018, according to the London ICE Exchange.
And the price of November futures for US WTI crude oil on October 4 rose above $ 77 per barrel. Thus, it reached its maximum value in almost seven years.
Note that prices are growing against the background of the recommendation of the OPEC + committee to further increase oil production. At today’s meeting of the monitoring committee, OPEC + recommended the countries that are members of the alliance to adhere to the previously agreed plan to increase production by 400 thousand barrels per month.
What will happen to oil prices?
Former President of the Association of Oil Product Operators of Ukraine Leonid Kosyanchuk believes that the exchange is primarily a financial and speculative instrument.
“What we see is futures quotes, and this will reach oil products not earlier than in 45 days. That is, oil quotes can serve as a marker of market trends,” the expert notes.
According to Leonid Kosyanchuk, during the year the price of oil and oil products will depend on the successful or unsuccessful fight against the coronavirus pandemic. Therefore, it is impossible to accurately predict what oil prices will be by the end of the year, as demand may increase or decrease at any time.
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