Oil Up, but OPEC+ Decision to Restrain Supply Caps Gains By Investing.com
By Gina Lee
Investing.com – Oil was up Tuesday morning in Asia but climbed down from their highest levels in years hit during the previous session. Investors listened to a statement that would maintain the current supply restrictions.
By 10:57PM ET (2:57 GMT), they were $81.59 higher than the original $80. were up 0.2% to $77.84.
OPEC+ stated at Monday’s meeting that they would continue to maintain an agreement on a gradual rise in oil production. India and the U.S. urged for increased output, but this decision was ignored. It also boosts fuel demand and continues the economic recovery following COVID-19.
The decision “will allow us to continue to normalize the market situation,” Russian Deputy Prime Minister Alexander Novak said during a speech at the meeting. On Nov. 4, the next meeting of cartel members will be to discuss production policies.
Inflationary pressures have contributed to the rise of black liquor, more than half in 2021.
The OPEC+ Decision reflects “a lack in urgency by the group to boost output on the expected surplus of 2022, and limited capacity among key producers.” Barclays Amarpreet Singh (LON) said it in a memo.
It was noted that the sudden jump in crude oil prices overnight seemed “a bit excessive” given that ministers had just confirmed the July decision, however it showed how tight the market is.
Now, investors are waiting on a report due later today.
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