Oil prices they are currently at $79 per barrel for Brent oil. Until there was a significant inter-weekly movement of global oil price tags last week, oil first rose from last week, but on Friday it was already significantly losing its price. The reason for such development was the escalating tension in connection with the meeting of the OPEC cartel, which took place on Thursday, November 30.
OPEC+ has decided to cut its production by another million barrels of oil per day, the Wall Street Journal reported. However, the markets had already been preparing for this decision for a whole week, so after this news the prices went up only minimally. In addition, Saudi Arabia has decided to extend its production restrictions, but it is currently unclear for how long. The markets therefore see several question marks surrounding the decision to cut production, which was even reflected in Friday’s drop in oil prices.
“Wholesale prices are currently not responding significantly to OPEC+ decisions,” says XTB financial markets analyst Marek Nemky.
“It is for this reason that I think that the further decline in fuel prices at gas stations is limited and we will probably see stabilization on the market.” adds Marek Nemky.