Decline in Oil Prices in the World Market

Oil prices have fallen in the global market, where OPEC Plus has indicated that it will not change the production increase this week.

Feb 3, 2023 - 19:38
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Decline in Oil Prices in the World Market

According to the news of the foreign news agency "Reuters", oil prices fell before the meeting of the Organization of the Petroleum Exporting Countries (OPEC Plus) and the US Federal Reserve.


Oil prices fell in global markets where oil producers are set to leave hikes unchanged at a meeting this week and investors are cautious ahead of a U.S. Federal Reserve meeting that could add to market volatility. According to the report, Brent crude futures fell 20 cents, or 0.2 percent, to $86.46 a barrel. U.S. West Texas Intermediate (WTI) crude futures were also down 11 cents, or 0.1 percent, at $79.57 a barrel.


The Organization of the Petroleum Exporting Countries (OPEC) ministers and its allies including Russia (OPEC Plus) are unlikely to revise current oil output during a virtual meeting on February 1. Analysts at the National Australian Bank said in a research note that there is no possibility of an increase in oil production by OPEC Plus at this week's meeting and we expect the US Federal Reserve Outlook Commentary on the outlook in the near term. I will play an important role.


According to the report, oil prices rose after tensions in the Middle East due to a drone attack on oil supplier Iran, and the world's largest crude importer, China, vowed to boost consumption recovery this week. which will increase the demand for fuel. Stefano Grasso, a senior portfolio manager at a private equity firm in Singapore, said it is still unclear what is happening in Iran, but any tension there could disrupt crude oil.

“Russia supplies oil, and China demands it; both countries buy and sell more than a million barrels per day above or below expectations,” said Stefano Grasso.

He said that as China is moving towards rapid recovery from the global epidemic Corona, whoever has a surprising market will surprise the world market, while Russia has plenty of oil despite the Western sanctions. There has been a surprising increase in the export of existing oil.

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