Xinhua News Agency, New York, September 17 (Reporter Liu Yanan) The Organization of Petroleum Exporting Countries (OPEC) and the non-OPEC ministerial-level joint supervisory committee held a regular meeting on the 17th, announcing that it will hold a ministerial meeting between OPEC and non-OPEC oil-producing countries It is proposed to extend the compensation reduction mechanism that will expire in September to the end of December this year, so that many oil-producing countries that have exceeded their quotas can fully fulfill their production reduction obligations.
Boosted by this news, international oil prices rose significantly on the 17th.
As of the close of the day, the price of light crude oil futures for October delivery on the New York Mercantile Exchange rose by 0.81 US dollars to close at 40.97 US dollars per barrel, an increase of 2.02%.
The London Brent crude oil futures for delivery in November rose 1.08 US dollars to close at 43.3 US dollars per barrel, an increase of 2.56%.
Bjornar Tonhaiyugen, senior vice president and head of oil markets at Resta Energy, said that market participants believe that OPEC and non-OPEC oil-producing countries will "come into the market" to boost confidence when oil prices are low. Pushed up the trend of international oil prices.
US Price Futures Group senior market analyst Phil Flynn said that major oil-producing countries are also open to compensating for the extension of production cuts to 2021, further supporting international oil prices.
In addition, bad weather and hedge fund short-covering have also driven up oil prices to a certain extent.
The so-called compensation cut means that in order to ensure that the production reduction agreement between OPEC and non-OPEC oil-producing countries is fully implemented, oil-producing countries that have previously cut production "not up to the standard" need to cut additional production to make up for insufficient production.