International oil prices ended a tumultuous session, closing at their lowest levels since early October, following the decision of the Organization of the Petroleum Exporting Countries (OPEC) and its OPEC + companies not to increase production more than planned here. and months, despite pressure from the US Biden government for more growth.
The OPEC + Joint Monitoring Committee, which oversees production cuts, had proposed an increase to be maintained at 400,000 barrels per day in December, a position which was adopted.
Oil prices have hit a seven-year high in recent years (since 2014), with oil-importing countries already hit hard.
Mr Biden has blamed OPEC + almost openly for boosting energy prices in the United States and around the world.
“The idea that Russia, Saudi Arabia and other major producers are not going to pump more oil so that people can have gas to go to work and go home, for example, is not right,” he told margin of the G-20 in Rome a few days ago the head of the American state.
The increase in production is not enough to meet the increased demand triggered by the economic recovery after the global recession caused by the pandemic. Limited supply has driven oil prices to a rally of about 30% since August.
OPEC + ‘s decision “did not come as a surprise to the markets”, said Andy Brogan, EY’ s energy executive. “The team’s strategy, as demand has recovered from the pandemic, has proved quite successful and there was no obvious reason to change course.”
The global benchmark, January delivery of Brent oil, fell by $ 1.45 or 1.8%, closing at $ 80.54 a barrel, at its lowest level since October 1, while on the other side of the Atlantic, the American WTI crude delivery in December It fell $ 2.05, or 2.5%, to close at $ 78.81 a barrel, its lowest level since Oct. 7, according to Dow Jones.
The question now, according to Rob Haworth, senior vice president of US Bank Wealth Management, is “when and if American shale oil producers will change strategy and expand production.”
The next OPEC + meeting at the level of Oil and Energy Ministers is scheduled for December 2.
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