OPEC+ Announces their Decision
Oct 05, 2022
Crude has been trending down as of late but with the pending announcement from OPEC+ (The Organization of Petroleum Exporting Countries) on Wednesday, prices have been seeing a sharp increase in the last few days due to the speculation of the group reducing 1-2 million barrels a day. This would be the most significant cut since the pandemic started.
As of today’s meeting, with the group, October 5, 2022, they have announced cuts of 2 million barrels per day. This goes against what the United States Administration in their efforts to lobby and dissuade OPEC+ from cutting their production. In response they will replenish up to 200 million barrels into the Strategic Petroleum Reserve (SPR) in order to support prices if the global demand shrinks. As a result, we have been seeing prices increase the last few days. Volatility will continue as we move into the weeks ahead. We have seen days of price decreases $.10-$.15 a day and the next day of increases close to the same. The continued war between Ukraine and Russia has continued to leave the marketplace volatile as well, along with the reported “sabotage” of the Nord stream pipeline.
Volatility looks to be the common theme here. However, the past tells us that if you are looking into contracting fuel for the next year November to the end of January is the best time and we feel like it will be again this year. Last November is a good example of this. If you have any questions regarding your energy needs or current pricing, please contact me or any of our Energy sales team.
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CVA Energy Team
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