Fear Of Cuts By OPEC+ Cause Oil To Dip – 23 August, 2022

Oil prices broke from the nearly 4% surge the previous session on fears of cut outputs by the Organization of the Petroleum Exporting Countries and allies (OPEC+). Brent crude futures, the global benchmark, was 0.4% or 40 cents lower at $99.82 per barrel, having risen 3.9% the previous day. U.S. West Texas Intermediate crude futures contract was 0.29% or 27 cents lower to $93.47 per barrel, having jumped 3.7% the previous day. Both contracts soared on Tuesday after the energy minister of de facto OPEC leader Saudi Arabia flagged the possibility of supply cuts to balance a market it described as “schizophrenic”, with the paper and physical markets becoming increasingly disconnected. OPEC+ is already delivering 2.8 million barrels per day less than its monthly target.