OPEC + sticks to planning gradual production increases, oil prices bark higher


London-OPEC + sticks to existing agreements to boost oil production on Monday, pushing oil prices to three-year highs and putting inflationary pressures on consumers fearing hindering economic recovery from pandemics Said to add.

Organization of Petroleum Exporting Countries, Russia, and an ally known as OPEC + are facing demand for additional supplies from large consumers such as the United States and India after oil surges of more than 50% this year.

OPEC + has “reaffirmed its production adjustment plan,” which it had previously agreed to add 400,000 barrels (bpd) per day in November, the group said in a statement released after online ministerial talks. rice field.

Brent crude barked above $ 81 a barrel on news that the group would remain on plans for gradual additional production.

Russia’s Deputy Prime Minister Alexander Novak said, “We monitor the situation. As we know, demand usually fell in the fourth quarter and plans for increase (production) are uneven.” I did. ..

The group increased its monthly production by 400,000 barrels / day in July, at least until April 2022, and already had a significant reduction from the worst-case pandemic restraints of 5.8 million barrels / day. We have agreed to phase out production cuts.

Demand recovered rapidly, but during a pandemic of surges in demand, supplies were disrupted by factors ranging from hurricanes that hit US production to low levels of investment across the industry.

US President Joe Biden’s senior aide met last week in Saudi Arabia with Crown Prince of Saudi Arabia Mohammed bin Salman on a variety of issues, saying oil was a “concern.” India, another major oil consumer, wants more supply.

“For now, most production members may be happy with the $ 80 Brent price per barrel, but there is backlash and pressure from buyers such as the US and China who are openly seeking lower energy prices. There is a risk of receiving it, “written before the meeting with the minister of consulting firm Rystad Energy.

Analysts said they expect uncertainty about the impact of coronavirus variants that threaten new economic turmoil on demand will weigh on OPEC +’s decision-making.

By Alex Lawler, Ahmad Ghaddar, and Olesya Astakhova

Reuters

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