Oil ahead of OPEC+ Supply Policy Council

Texas News Today

FILE PHOTO: Crude oil storage tanks are seen in an aerial photo of the Cushing Oil Hub in Cushing, Oklahoma, USA, April 21, 2020. Reuters / Drone Base

4 October 2021

TOKYO (Reuters) – Oil spilled on Monday ahead of the OPEC+ supply policy conference as the world recovers from the COVID-19 pandemic decided whether it can sustain recent price increases.

Brent crude fell 24 cents (0.3%) by 0143 Greenwich Mean Time to $79.04 a barrel. It rose 1.5% last week, rising for the fourth straight week. US oil fell 27 cents (0.4%) to $75.61 after a rally in the past six weeks.

Oil prices edged higher amid supply turmoil and improving global demand, pushing Brent to nearly three-year highs above $80.

“Investors are increasingly focused on the upcoming OPEC+ meeting, which has increased their confidence in the strong recovery of global growth, thereby increasing their risk appetite,” ANZ Research said.

OPEC+, which group allies, including Russia, along with the Organization of the Petroleum Exporting Countries (OPEC), will meet later in the day.

The conglomerate is facing pressure to produce more at lower prices due to a faster-than-expected demand recovery in some parts of the world.

OPEC+ in July agreed to increase production by 400,000 barrels monthly and eliminate existing savings of 5.8 million barrels by at least April 2022. But recently, four OPEC+ sources told Reuters that producers are considering adding more deals than expected.

November marked the first increase since the October volumes were fixed at the last OPEC+ meeting.

Rising oil prices driven by an even greater increase in gas prices https://www.reuters.com/business/energy/whats-behind-wild-surges-global-lng-prices-risks-ahead- 2021-10 -01 is up 300% and is trading at around $200 a barrel under comparable conditions, encouraging the switch to fuel oil and other crude oil for power generation and other industrial needs.

(Reporting by Aaron Sheldrick, edited by Himani Sarkar)

Oil ahead of OPEC+ Supply Policy Council

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