Crude values rise ahead of OPEC+ meeting

Front-month ICE Brent increases by $0.55/bbl on the day from Friday, to $95.55/bbl at 09.00 GMT.

PHOTO: Market participants await the outcome of the OPEC+ meeting later today. Getty Images

Upward pressure:

Market participants await the outcome of the OPEC+ meeting later in the day as producers are expected to tweak production quota to support prices. Meanwhile, sources tell Reuters that OPEC+ is likely to keep oil output quotas unchanged for October.

“While we expect the group to keep output unchanged, the rhetoric may be bullish as it looks to arrest the recent fall in prices,” ANZ analysts said in a note.

Europe’s energy crisis deepened after Russia’s announcement on Friday evening that it would no longer supply gas through the Nord Stream 1 pipeline. Russia’s warning shot came after US secured backing from other G7 countries for a plan to impose a price cap on Russian crude exports.

Downward pressure:

US and Iranian nuclear deal talks have come to a standstill after the US State Department labeled Iran's recent proposal as "not constructive".

Soaring inflation in the US and eurozone, the energy crisis in Europe, and China’s weak economic data have sparked fears of a looming global recession.

If the energy crisis gets to a point where rationing is imposed, countries could face even worse economic outlooks than a technical recession, writes UBS.

Deutsche Bank has predicted US economy to slip into a recession early next year, while according to Goldman Sachs, the country has a one in three chance of entering a recession by 2023.

By Konica Bhatt

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