Blackmail continues: OPEC ready to cut volume

Blackmail continues: OPEC ready to cut volume Fate of oil will be decided next week  the next OPEC meeting is scheduled for October 5. In the meantime, the market is also feverish from political news.Largest oil refinery owned by Total will shut down indefinitely due to strikes. Earlier, the refinery of the American Exxon Mobil also closed in France, and in the whole country, 70% of oil refineries are no longer working. Trade unions demand to give part of the excess profits of companies to compensate employees. According to preliminary estimates, to combat high energy prices in 2023, France will need about 11 billion.Poland agreed to transfer to Germany the surplus oil, which is formed as a difference between the demand of Polish refineries and the technical capabilities of the national oil transportation system. At the same time, the Polish government hopes to expand the supply of LNG and oil from Nigeria, but there are no real contracts yet.A short-term positive for market prices was an unexpected decline in commercial stocks of petroleum products in the US. The argument for the purchase can be considered the fears of market participants regarding the supply of hydrocarbons from Russia and the problem due to another hurricane. More than 11% of production capacity has been shut down in the Gulf of Mexico, so next week an IEA report should confirm production cuts.Members of the OPEC+ energy pact may agree to cut oil production by 0.5 to 1 million b/d to mitigate risks from a worsening global demand outlook. This will help stabilize prices at $90 over a 3-6 month period. Recall that representatives of the Cartel always deny the existence of any price targets and focus solely on the market balance.However, if such a decision is made, then both major benchmarks  WITI and Brent  may again test the $95-100 zone. So we are getting ready to buy, but do not forget about risk control.Profits to yall!