(Bloomberg). Oil has stabilized in Asian trading following a rally to their highest levels since 2014. This was due to OPEC+’s decision to keep its gradual supply increase, despite the fact that the market is facing an energy crisis.

New York futures traded at $78 per barrel on Monday, after a 2.3% increase. The alliance maintained a 400,000-barrel-per-day rise for November. Some market watchers were expecting the group, led by Saudi Arabia and Russia, to increase production by more than planned due to a spike in prices that’s led to greater demand for oil products ahead of winter.

See also: OPEC+’s Stay-the-Course Approach Alarms Febrile Oil Market

As economies recover from the pandemics, crude markets tightened. OPEC modeling predicts a shortage in the coming two months. Goldman Sachs Group Inc (NYSE:). As utilities struggling with rising natural gas prices turn to oil, they will see an additional 650,000 barrels per day in demand this year. Saudi Aramco (SE) The gas crisis is already increasing crude consumption.

Prompt timespread in backwardation was 80c per barrel. This bullish market structure is where close-dated contracts can be less expensive than their later-dated counterparts. This compares to 74cs per week before.

The OPEC+ decision “will allow us to continue normalize the market situation,” Russian Deputy Prime Minister Alexander Novak said during a speech at the meeting, part of which was broadcast by Rossiya 24 state TV channel. On Nov. 4, ministers will again meet to discuss the production policy.

©2021 Bloomberg L.P.