Stock Groups

Oil Up, but OPEC+ Decision to Restrain Supply Caps Gains By


© Reuters.

By Gina Lee – 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.

Disclaimer Fusion MediaWe remind you that this site does not contain accurate or real-time data. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. As such, the prices might not reflect market values and could be incorrect. Fusion Media does not accept any liability for trade losses that you may incur due to the use of these data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.