Geoffrey Smith 

Investing.com — Crude oil prices came off fresh seven-year highs in early trade in New York on Monday but remained well supported by signs that key producers are struggling to raise output to meet world demand.

After hitting a record high of $83.14, futures had risen 1.2% by 9:40 am ET (1340 GMT). They previously hit an $83.14 high. Futures are the global benchmark and were at their highest point since 2014.

The U.S. was up 0.5% to $2.4990 per gallon, which is a new seven-year record.

Bloomberg earlier reported, citing unnamed source close to the bloc’s operations, that the Organization of Petroleum Exporting Countries (OPEC) had been producing an average of 750,000 barrels per hour below the maximum limit set by Russia in September. The agency’s sources attributed it to past problems of under-investment in Nigeria and Angola.

Kuwait was also the fourth largest producer of oil in OPEC, after Saudi Arabia and Iraq. It said its sustained output capacity had decreased by 227,000 barrels per day to 2.57 million barrels per day during its fiscal 2021.

As the world’s demand rises due to the lifting of restrictions related to pandemics, OPEC producers are struggling to reach their output targets. This is causing an imbalance in supply and demand. The global inventory is already at its lowest point in 3 years.

Japan has joined the ranks of net energy importers and called on OPEC, its allies, to be more aggressive in keeping prices down. Japan is one of many countries fearing that high energy prices will kill the economic recovery – albeit there are more signs of that in places where and coal prices have forced utilities and energy-intensive companies to cut output.

However, there was some sign of relief on the demand side earlier, as China’s third-quarter gross domestic product data for the third quarter showed the world’s second-biggest economy – and its biggest oil importer – slowing more sharply than expected.

In particular, China’s independent refiners – known as ‘teapots’ – reduced their throughput to the lowest in 16 months as Covid-19-driven lockdowns depressed mobility and a creeping energy crisis stunted industrial demand.