Fall in crude oil price to reverse on lower supplies from OPEC+
Crude oil prices dipped 6-8% for the third consecutive month, on
a) Fears of recession in the US and Europe
b) Continued lower demand from China
c) Incremental supply from US Strategic Petroleum Reserve (SPR)
d) Higher supply from OPEC.
Crude oil production from OPEC countries touched a 29-month high at 29.9mbpd in Sept. 2022 versus 29.1mbpd in Aug. 2022, on higher production from Iraq and Libya. In its recent meeting, OPEC+ approved a 2mbpd cut in its production quota from Nov. 2022, for the next 14 months. Saudi Arabia and Russia agreed to cut nearly 0.5mbpd each, with the rest of the countries agreeing to a 1mbpd cut.
