Oil rises on anticipation of historic cuts

Oil prices started the new week fast. On ICE, the price of Brent oil per barrel increased by $ 3 to $ 88.14. West Texas Intermediate (WTI) crude oil was sold at $82 a barrel. The expectation that the Organization of Petroleum Exporting Countries (OPEC) and the OPEC+ group, which consists of some non-OPEC producer countries, will cut the supply is effective in the rise in prices.

Investors focused on the meeting where the OPEC+ group will meet on Wednesday and determine the production plan for November.

While the Group is expected to cut production at the said meeting, it is considered that a limited cut to be announced will not have an impact on prices since it currently produces well below the target. At its last meeting, the group had decided to cut production of 100,000 barrels per day for October.

Senior Australian and New Zealand Banking Group (ANZ) Commodity Strategist Daniel Hynes pointed out that the barrel price of Brent oil, which fell by about 22 percent in the third quarter of the year, increased the concerns in the OPEC + group.

Hynes stated that the group can intervene in the decrease in prices by going through a production cut. “Any cuts of less than 500,000 bpd will be ignored by the market. Therefore, we think a major cut of 1 million bpd is likely.” used the phrases.

Technically 87.69 to 88.15 in Brent oil dollar It is stated that the range can be followed as resistance and the range of $87.23 to $86.77 as support.