Oil falls to lows after OPEC meeting

MEXICO CITY (apro).- Oil prices were already going down and decreased even more, reaching $80, after the meeting of the Organization of Petroleum Exporting Countries (OPEC+).

The member countries announced that they are going to extend their policy of production cuts until December 2025, to try to protect crude oil from depreciation in the market and support prices, which achieved a brief recovery.

Despite the measure, the prices of this product continue to decline due to the slow growth in demand; high interest rates and increased production in the United States, which has remained the market leader since 2018.

“The idea is that prices will rise starting next year, that is the objective that is maintained to create a certain tension in the supply, but it is also a scenario that can remain up in the air in this framework of volatile economy, because “It can change the equation a lot, for example, if the United States and Guyana continue to produce a lot or if demand does not grow as it is not growing now,” said Ana Nieto, financial analyst for the German media “news.”

According to the OPEC+ Monthly Oil Market Report, the current forecast assumes that domestic political and geopolitical developments will not significantly affect growth momentum, even though several member countries will have elections, such as in the United States, India, Indonesia , the United Kingdom and South Africa, in addition to Mexico, which already had its election day this past weekend.

According to the same report, the main drivers of growth in that market for the future are expected to be the United States, Canada, Brazil and Norway.