The price of a barrel in the London market is currently $82.60. On the American market, the value of oil fell to $76, according to recently published data on the OilPrice website.
Ministers of OPEC member countries and their allies, including Russia, have confirmed production targets. They should reduce production by two million barrels per day by the end of this year to adapt it to reduced demand, the Mina agency reports.
In January, the 10 members of OPEC produced 920,000 barrels daily, less than the target level, a Reuters survey showed, with Iraqi exports falling and lower supplies from Nigeria.
In December, OPEC production fell short of planned level by 780,000 barrels per day.
Interest rate decision awaited
Russian Deputy Prime Minister Alexander Novak said that Russian production and exports are stable and not affected by Western sanctions and price restrictions. However, he did not give numbers.
Last year, Russia produced 535 million tons of oil, or 10.7 million barrels per day, which is 2.1 percent more than in 2021.
Traders are closely watching the Federal Reserve (Fed) meeting, where decisions on interest rates will be made.
Predictions of a more modest rise in interest rates in the US by a quarter of a percentage point pressured the dollar index, which supported oil prices, explained PVM analyst Stephen Brennock, as oil became cheaper for buyers with other currencies.
Market sources said that the pressure on prices was data from the American Petroleum Institute (API) on an unexpectedly strong increase in US crude oil inventories last week, around 6.3 million barrels.
“Commercial warehouses in North America are full,” said Norbert Rucker of the Swiss bank Julius Baer.
On the American market, barrels in futures contracts are more expensive than on the physical market, indicating an oversupply, while the situation is opposite on the London market.
The Organization of the Petroleum Exporting Countries said separately that on Tuesday, the price of a barrel of a basket of its members was $81.95.