Oil rises after complying with OPEC+ supply restrictions

Texas News Today

FILE PHOTO: Oil storage tanks and crude oil pipeline equipment are seen during the Ministry of Energy’s visit to Strategic Petroleum Reserves in Freeport, Texas, USA on June 9, 2016. Reuters / Richard Casson / FILE PHOTO

5 October 2021

Aaron Sheldrick

TOKYO (Reuters) – In the previous session, oil prices rose on Tuesday, hitting their highest level in at least three years, after the world’s major oil producers decided to maintain oil supply caps Is. Due to increased growth.

Brent crude was up 2.5% on Monday by 0341 Greenwich Mean Time by 23 cents (0.3%) to $81.49 a barrel. West Texas Intermediate (WTI) oil rose 12 cents (0.2%) to $77.74 after gaining 2.3% in the previous session.

OPEC and its allies, including Russia (collectively OPEC+), will gradually increase oil production on Monday, ignoring calls from the United States and India to increase global output. He said he would uphold the agreement. The economy will recover from the coronavirus pandemic with patches.

Crude oil prices have already risen by more than 50% this year, which will hamper recovery from the pandemic, with oil-consuming countries worried about inflationary pressures.

OPEC+ was concerned that a fourth global wave of COVID-19 infections could affect the recovery in demand, despite pressure to increase production, sources polled. I told Reuters a while back.

Russian Deputy Prime Minister Alexander Novak said after the meeting that he believes the market is currently balanced.

“We expect demand growth to gradually normalize and oil prices to begin a correction in the fourth quarter,” Capital Economics said.

“This year, demand growth outpaced supply and helped prices hit record highs for the first time, but we expect that move to reverse as OPEC+ increases in production,” Capital said. Rice field.

Meanwhile, US crude and distillate inventories are likely to decline last week, according to a preliminary study by Reuters. [EIA/S]

Five analysts polled by Reuters estimated oil inventories had fallen by about 300,000 barrels in the week leading up to October 1.

Avtar Sandu, Senior Commodity Manager, Philip Futures Singapore, said:

(Reporting by Aaron Sheldrick, edited by Kenneth Maxwell)

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