On Monday, oil prices dropped further following the OPEC+ supply policy meeting that may decide whether a current comeback at prices can be carried on as the world is still coping up with the aftermath of the COVID-19 pandemic.
Brent Crude was edged down by 24 cents or 0.3 per cent to USD 79.04 per barrel at 0143 GMT. Notably, last week, it increased by 1.5 per cent, the fourth week of consecutive growth and earning in a row. Meanwhile, the U.S. crude oil fell nearly 27 cents or 0.4 per cent to USD 75.61, after surging 6 weeks on a trot.
Interestingly, oil prices are consistently increasing and supply is disordered with improving worldwide demand. It supported Brent crude last week to nearly three years rise above $ 80. Risk hunger can be boosted by increasing confidence in a major pick up in worldwide growth, while traders are concentrating on the further OPEC+ meeting”, ANZ Research mentioned in a note.
OPEC+ refers to the groups of the Organization of the Petroleum Exporting Countries (OPEC) and merges, led by Russia. They are going to congregate for a meeting which is planned to meet later in the day.
The batch is facing pressure from few nations to generate more production to support lower costs as demand has improved quickly in a specific part of the world.
OPEC+ allowed in July to increase the output by nearly 400,000 barrels each day every month until up to April 2022 to step up 5.8 million BPD of recent cuts. But four OPEC + sources stated that in a few parts of the world, manufacturers were looking to increase production more than they predicted.
The soonest, the rise would be seen nearly in November as OPEC+’s last meeting has planned October volumes. The oil price improvement also supported a more significant increase in gas prices that consistently spiked 300 per cent and recently traded around 200 dollars per barrel in relative terms, keeping shifting to fuel oil and other crude products for producing electricity and other industrial requirements.