Oil Prices Jump as OPEC+ Meet to Discuss Output Raise
Market prices of crude oil jump early on Wednesday as the Organisation of Petroleum Exporting Countries and allies (OPEC+) members. Following the resolve of the impasses between key members, the United Arab Emirates and Saudi Arabia, the oil cartel commenced a planned incremental output raise for the year.
However, the United States government had called on OPEC+ to significantly raise supply to reduce inflationary pressure as gas prices jump in America, but analysts believe the group will stick to a plan to add 400,000 barrels per day (bpd) each month through to December.
Crude prices had plunged due to rising cases of covid-19 delta variant across Asia, the United Kingdom and America with lockdowns in China while there are unsettled issues around the effectiveness of available vaccines.
Brent crude price for November delivery gained 36 cents to touch $71.99 a barrel today while the U.S. West Texas Intermediate (WTI) crude for October printed at $68.81 a barrel, up 31 cents.
U.S. President Joe Biden’s administration has urged OPEC+ to boost output to tackle rising gasoline prices that it views as a threat to the global economic recovery.
Also supporting prices, a U.S. industry report showed crude inventories fell more than expected last week, steadying after overnight losses caused by Hurricane Ida on U.S. refineries.
Crude stocks fell by 4 million barrels for the week ended Aug. 27, according to two market sources, according to American Petroleum Institute (API) figures.
Read Also: Oil rises after OPEC warn members to stick to quotas
Market prices fell early in the week as Hurricane Ida inflicted massive destruction, forcing shutdowns of U.S. Gulf oil production, the storm had weakened into a Category 1 hurricane. Nearly all offshore Gulf oil production, or 1.74 million barrels per day, was suspended in advance of the storm.
Oil Prices Jump as OPEC+ Meet to Discuss Output Raise
