Oil market is in a “state of schizophrenia”

According to the Organization of Petroleum Exporting Countries (OPEC), the oil market is not sending adequate signals

The Organization of Petroleum Exporting Countries (OPEC) warned that the crude oil market is operating under a “state of schizophrenia”, so it is not sending the right signals to be balanced, according to its monthly report on the market. oil.

“In a way, the market is in a state of schizophrenia and is creating a kind of yo-yo market and sending the wrong signals at a time when good visibility, clarity and well-functioning markets are needed more than ever,” it said in a statement. document published this week.

OPEC explained that both oil demand and supply remain unchanged compared to estimates released last month.

Last week, OPEC +, the group formed by the organization and its allies, decided to reduce its production from October by 100,000 barrels per day. This meant reversing the movement agreed in the month of August, when the group decided to increase production by the same figure per day during September.

According to this Tuesday’s report, OPEC produced 29.651 million barrels per day during the month of August, which represents an increase of 618,000 barrels per day. Much of this increase is due to Libya, which increased its output by 426,000 barrels per day. The country does not participate in the production control agreement due to its internal problems.

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Source: dpa

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