Per the latest weekly data from Reuters, asreportedby market analyst John Kemp, traders are buying oil at the fastest rate since 2020
After months of skepticism, traders seem to have finally realized that OPEC is serious about keeping crude oil supply constrained. Per the latest weekly data from Reuters, as reported by market analyst John Kemp, traders are buying oil at the fastest rate since 2020. And oil prices are on the rise. Of course, OPEC is not the only factor behind the change in sentiment among traders.
Yet while geopolitical factors play a big role in day-to-day price swings, the OPEC cuts normally have a longer-term effect—once it kicks in, and this time, it took a while. Saudi Arabia first announced in July that it would reduce the amount of oil it supplies to global markets. Some saw it as insignificant, while others dismissed it as a desperate attempt to prop up the unproppable as prices remained stubbornly stuck within a narrow range below $80 per barrel.