International oil prices rose on the 5th (local time) as OPEC+, a consultative body of the Organization of Petroleum Exporting Countries (OPEC) and Russia, decided to reduce crude oil production next month.
According to Bloomberg News, the price of West Texas Intermediate (WTI) in October, which fell 6.65% last week to close at $86.87 per barrel, rose 3.99% from the previous trading day to $90.34 after news of a cut in OPEC+ production.
Brent crude oil prices, which fell 6.1% last week to $93.02 on the 2nd, also rose 4.24% to $96.97 on the same day.
Since then, WTI and Brent crude oil prices have fluctuated, representing $88.62 and $94.76 as of 11:40 a.m. Korean time, respectively.
OPEC+, which had previously decided to increase crude oil production by 100,000 barrels a day in September, announced after a monthly meeting that it would reduce crude oil production by 100,000 barrels again next month to the August level.
This reflects concerns from oil-producing countries that demand for crude oil may decrease due to concerns over the recent economic recession, and is the first decision to cut production in more than a year.
International oil prices, which once exceeded $100 a barrel in the aftermath of Russia’s invasion of Ukraine and rising raw material prices, have fallen since early June, returning much of the rise at the beginning of the year.
In addition, prospects for future oil prices are mixed amid concerns over inflation, economic slowdown, a rise in the benchmark interest rate and a strong dollar.
Saudi Arabia’s Energy Minister Abdulaziz bin Salman said on the decision to cut production, “It shows that we will carefully, preemptively, and proactively intervene.”
Bloomberg observed that Saudi Arabia could take additional measures to support oil prices if necessary.
In addition, RBC Capital Market analysts interpreted that OPEC+ showed its intention to resume active market management to prevent serious mass selling of crude oil due to concerns over an economic slowdown or increased policy oil supply.