LONDON OPEC+ said on Monday it would stick to an existing agreement for a gradual increase in oil output, sending crude prices to a three-year high and adding to inflationary pressures that consuming countries fear. That the economic recovery will be derailed by the pandemic.
The Organization of the Petroleum Exporting Countries, Russia and its allies, known as OPEC+, are facing calls for additional supplies from large consumers such as the United States and India, after oil rose more than 50 percent this year. had to do.
OPEC+ “reaffirms the production adjustment plan” that it previously agreed would add 400,000 barrels per day (bpd) in November, the group said in a statement released after ministerial talks online.
Brent crude climbed above $81 a barrel on news that the conglomerate would stick to its plan for gradual additional production.
“We will monitor the situation, as we know, demand usually falls in the fourth quarter, our plans on growth (production) are uneven, we will see how the market will be balanced,” said Russian Deputy Prime Minister Alexander Novak ..
The group agreed in July to increase production by 400,000 bpd per month until at least April 2022, phasing out 5.8 million bpd of existing production cuts, which are already occurring during the worst of the pandemic. The restrictions were much less.
Demand has boomed, while supply has been disrupted by factors ranging from storms that have hit US production during the depths of the pandemic to low levels of investment in the industry when demand plummets.
Joe Biden, a senior aide to the US president, met with Saudi Crown Prince Mohammed bin Salman in Saudi Arabia last week on a range of issues and said oil was “a matter of concern”. India, another major oil consumer, has insisted on increased supply.
“For now, most producer members may be comfortable with an $80 per barrel Brent price, but there is a risk of receiving backlash or pressure from buyers such as the US and China, who are openly demanding lower energy prices, Consultancy Rystad wrote before the Energy Ministers’ meeting.
Analysts had said they expected uncertainty about the impact on demand from variants of the coronavirus to weigh on OPEC+ decision-making, which threatens new economic disruption.
by Alex Lawler, Ahmed Ghadar, and Olesya Astakhova
This News Originally From – The Epoch Times