Crude oil is losing value. The Organization of the Petroleum Exporting Countries and its allies (OPEC +) agreed at a summit on Thursday to maintain plans to increase oil production by 400,000 barrels a day.
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Reuters news agency said after the alliance conference ended that Saudi Arabia, one of the main producers in OPEC +, rejected calls to increase production. Producers are to be afraid of acting too quickly, fearing repeated failures in the fight against the COVID-19 pandemic.
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Saudi Arabia’s oil production is expected to exceed 10 million barrels a day in December for the first time since the pandemic began.
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Crude oil – prices
Oil prices soared this year to a three-year high above $ 86 a barrel as demand recovers from COVID-19 restrictions. Crude oil depreciated on Thursday afternoon.
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A barrel of West Texas Intermediate oil in December delivery on the NYMEX fuel exchange in New York cost about $ 80, down more than 1 percent. Brent on ICE in London for January deliveries was valued below $ 82 a barrel.
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US President Joe Biden criticized OPEC cartel countries during the COP26 climate conference in Glasgow for contributing to the global energy crisis and high oil prices. According to Biden, this is the result of these countries’ refusal to increase the extraction of raw materials.
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In turn, Antony Blinken, the US secretary of state, put pressure on the United Arab Emirates to increase the supply of oil. Blinken met in Glasgow with UAE Sheikh Abdullah Bin Zayed Al Nahyan.
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In July, the OPEC + countries decided to increase production by 400,000 from August. barrels a day. At the same time, the deadline for oil production to return to pre-COVID-19 levels has been moved from April 2022 to the end of next year.
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Due to the pandemic in March 2020, the price of oil plummeted. At that time, OPEC + decided to cut production by 9.7 million barrels per day, which resulted in the rebound in crude oil prices desired by the producers.
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photo-source">Main photo source: Shutterstock
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