Prices fall in line with adjustments to production cuts admitted by Saudi Arabia

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Analysts focus all their attention on the lack of agreement on positions within OPEC as the Saudi Arabian Energy Minister has shown a more flexible stance regarding what the country is willing to do to adjust production at any time.

The price of a barrel of Brent, which serves as a reference for Europe, fell again for the second consecutive session after already trading above 82 dollars last week. This Monday, the price of a barrel drops by more than half a percentage point.

Thus, the barrel of Brent was trading this morning at 81.3 dollars, a drop that seems to be in line with some calm in the markets in the face of tension in the Middle East, although it appears to have no tendency to ease in the face of the latent conflict between Israel and Hamas.

In this way, analysts focus all their attention on the lack of agreement on positions in the Organization of Petroleum Exporting Countries (OPEC). Saudi Arabia’s Energy Minister has shown a more flexible stance regarding what the country is willing to do to adjust production at any time.

In other words, this person “opened the door” to less rigidity associated with production cuts that currently stand at 1.5 million barrels per day. Although the Saudi minister refused to detail how this easing of adjustments will be made, the person responsible for Energy in the country welcomed the fact that oil demand is “consistently higher than some projections”. Faced with this scenario, the minister recognized that the country is paying attention to these projections and acting accordingly.