October 5, 2021

OPEC+ Sources of Oil Prices at the Highest Peak in 7 Years

 The Organization of the Petroleum Exporting Countries (OPEC) and its ally better known as OPEC+ have decided to stick to an agreement to gradually increase oil production.

Earlier, OPEC faced calls from the world's largest consumers such as the United States and India asking for production to be done faster to meet the recovering demand from the Covid-19 pandemic.

However, at a meeting held yesterday, OPEC+ reaffirmed that the increase in production will continue with 400,000 barrels a day in November.

Brent crude oil trading soared above $ 81 a barrel following the decision, touching its latest three -year high. Meanwhile, US WTI jumped more than 2% to almost $ 78 a barrel, the highest level since November 2014.

Russian Deputy Prime Minister Alexander Novak said that they will continue to monitor the situation in the oil market, and demand will usually fall in the fourth quarter.

Before the meeting, OPEC+ sources said that the group was under pressure to increase production faster, but because they were worried about the fourth wave of Covid-19, no major changes have been made for now.