oil prices

There is a possibility that the “OPEC +” organization will decide to reduce its oil production significantly,
which affected the rise in oil prices, at a time when Europe is suffering from an energy crisis,
after imposing sanctions on Russia for its invasion of Ukraine

A meeting between the oil-exporting countries “OPEC” is scheduled to be held on Monday,
to determine production levels in October, after expectations that Saudi Arabia would cut production.

West Texas crude recorded a rise of about $89 a barrel,
after recording a decline last week of about 7% due to fears of slowing global economic growth and
closures in China due to the plan to combat the Coronavirus.

Crude oil has fallen by about a quarter since early June as the global economic slowdown
and central bank rate hikes erase all the gains made since the Russian invasion of Ukraine.

The Russian gas company “Gazprom” also stated
that the flow of gas along a major pipeline to Germany will not resume,
after the Group of Seven decided to set a ceiling for Russian oil prices.

The rise in oil prices came at a time when the Bloomberg US dollar index rose to its highest levels,
amid investors’ desire to stay away from risky assets, including stocks.

And before the “OPEC +” alliance session,
which may coincide with the holidays in the United States,
which may cause weak trading operations,
all expectations indicate that there are no indications of a change in supplies during this stage.

The energy crisis causes the closure of metal factories and exposes them to an existential crisis.

The decision to close a smelter is considered one of the most difficult decisions in the aluminum industry,
and this comes as a result of the power outage and the drop in “refinery” temperatures,
which may require a high cost of millions of dollars in order to restart it again.

Aluminum is one of the metals that are used in the manufacture of car tires and soda cans to ballistic missiles,
and the production of one ton of aluminum requires about 15 megawatt-hours of electricity,
which is enough to operate 5 homes in Germany for a year,
and the crisis is still ongoing because European manufacturers are paying costs
It is very expensive to ship aluminum through domestic ports,
and expectations indicate that higher costs may make these factories in a more difficult
situation compared to factories in Asia and the United States.

European natural gas prices rise 23% after Russian supplies stop.

Natural gas prices in Europe rise at the beginning of Monday’s trading,
after Russia announced that it would halt supplies of gas exported to Europe
through a major export pipeline “Nord Stream 1” for an indefinite period.

The Russian company, “Gazprom”,
had said last Friday that gas flows through
the pipeline would not return on schedule on Saturday due to an oil leak
in a gas turbine that helps pump gas into the pipeline,
but it did not indicate when this problem would be fixed.

Countries such as Sweden and Finland announced an emergency subsidy plan
at the weekend to help utility companies already grappling with
rising living costs and accelerating energy prices.

Attention is directed to the next meeting of European energy ministers to discuss
proposals to reduce the high and escalating electricity prices.

And natural gas futures contracts rose in the Netherlands for October
delivery to 263 euros per megawatt, by 22.98%,
after it had risen by more than 30% earlier in trading.

artical name The possibility of production cuts by “OPEC Plus”

The possibility of production cuts by “OPEC Plus”

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