Where the oil market was still waiting last week, this week a clear direction is being chosen, and that is downwards. This means that the oil price is back around €72 per barrel, around the same level as a month ago. OPEC+ is now considering extending the production restrictions by at least one month.
There is still uncertainty about the US elections that will take place next week, as Harris and Trump are very close in the polls and seem to have an equal chance of becoming the next president of the United States. In addition, US oil inventories unexpectedly fell last week by 573.000 barrels. A week earlier, inventories increased by 1,64 million barrels.
However, the bearish factors are currently driving the market. For example, there is less tension about the geopolitical situation in the Middle East. Israel's counterattack on Iran, which the market was anxious about - not least because oil facilities there could be targeted - turned out to be less than expected. Iran's reaction - Ayatollah Ali Khamenei said that the attack 'should not be exaggerated' - is also encouraging. In addition, America is pushing for a 60-day ceasefire in Lebanon between Israel and Hezbollah, on the way to a permanent peace agreement.
There are also no signs yet from China that the economy is picking up there. On the contrary, new figures from the Chinese Bureau of Statistics on Industry show that profits in September fell by more than a quarter compared to a year ago.
At the time of writing (Wednesday afternoon, October 30), Brent crude oil is at €72,24 per barrel. Last Friday, October 25, it was still €76,05. The oil price has risen slightly compared to last Tuesday (October 29), when it was listed at €71,12.
OPEC+ wants to extend production cuts
Due to the rising supply and weak demand (and ditto price), OPEC+ is now considering extending the production cuts of 180.000 barrels per day that the member countries imposed on themselves in December by a month or more. This is reported by news agency Reuters based on various sources. The oil cartel previously extended the production cuts by two months due to the low prices, which were then around the current level.
Diesel price
The diesel price drops further to €119,43 per 100 litres. Last week it was €121,79 and two weeks ago it was €123,25 per 100 litres.