The OPEC+ alliance of oil-exporting countries on Wednesday will debate a potentially large cut in the amount of crude it ships to the global economy.
The OPEC+ alliance of oil-exporting countries on Wednesday will debate a potentially large cut in the amount of crude it ships to the global economy - a move that could help Russia weather a looming European ban on oil imports and raise gasoline prices for U.S. drivers just ahead of national midterm elections.
Russia "will need to find new buyers for its oil when the EU embargo comes into force in early December and will presumably have to make further price concessions to do so," the analysts wrote in a note. "Higher prices beforehand - boosted by production cuts elsewhere - would therefore doubtless be very welcome."
The fall in oil prices has been a boon to U.S. drivers, who saw lower gasoline prices at the pump before costs recently started ticking up, and for U.S. President Joe Biden as his Democratic Party gears up for congressional elections next month. Such a production cut "would undoubtedly signal to the market the determination and resolve of the cartel to support oil prices," said UniCredit economist Edoardo Campanella. But supply would drop by less than announced.
International benchmark Brent has sagged as low as $84 in recent days after spending most of the the summer months over $100 per barrel. U.S. oil prices fell below $80 per barrel Friday. Ahead of the meeting, U.S. crude traded at $86.38 and Brent at $91.66.
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