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Friday, October 15, 2021

Oil Prices Continue Gains After OPEC + Decision

Oil prices continue to achieve gains, rising by about 2% on Friday, after the “OPEC +” group agreed to a modest increase in production in January.

By 08:45 Moscow time, US crude futures were trading at $ 46.47 a barrel, an increase of 1.82% over the previous settlement price. Brent futures were trading at $ 49.70 a barrel, an increase of 2.03% over the previous closing price. The “OPEC +” group agreed yesterday, Thursday, to a modest increase in oil production as of next January, by 500 thousand barrels per day.

The increase means that the group will cut production by 7.2 million barrels per day, equivalent to 7% of global demand from next month, compared with current cuts of 7.7 million barrels per day.

The cuts are aimed at addressing weak oil demand in the midst of a second wave of the Corona virus. It was expected that OPEC + would extend the existing cuts until at least next March, after it backed away from previous plans to boost production by two million barrels per day.

However, after hopes of speedy approval of vaccines to prevent the virus resulted in a rise in oil prices at the end of last November, several producers began to doubt the need to maintain this tightening in oil policy.

Source: news agencies.

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