Magical Trade
Wednesday, March 22, 2023
  • Home
  • Trade News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
  • Home
  • Trade News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Magical Trade
No Result
View All Result
Home Trade News

OPEC+ members likely to hold firm on slow oil output, despite international pressure

Magical Trade by Magical Trade
November 4, 2021
in Trade News
0
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

RELATED POSTS

Exxon vs. Chevron? Goldman Sachs reveals its favorite — and other energy picks

Euro pushes higher as ECB chief Lagarde says inflation is still too high

Oil pumping jacks, also known as “nodding donkeys,” operate in an oilfield near Almetyevsk, Tatarstan, Russia, on Wednesday, March 11, 2020.

Andrey Rudakov | Bloomberg | Getty Images

Oil prices have hit their highest levels since 2014, and crude importing countries are feeling the pain. But despite diplomatic pressure, OPEC and its allies are unlikely to decide to open up the taps during the oil cartel’s meeting on Thursday.

That likely means continued high energy prices through the end of this year and potentially into 2022, analysts say.

“For now, we still expect to see OPEC+ members remain in favor of keeping oil markets tight, taking advantage of the elevated prices to improve fiscal accounts,” Edward Bell, senior director of market economics at Dubai-based bank Emirates NBD, wrote in a note Wednesday.

President Joe Biden squarely blamed the reluctance of OPEC+ to pump more oil for the sharp rise in energy prices in the U.S. and around the world.

“The idea that Russia and Saudi Arabia and other major producers are not going to pump more oil so people can have gasoline to get to and from work, for example, is not right,” Biden said Sunday at the G-20 meeting in Rome, Italy.

Japan and India have also joined the U.S. in trying to pressure OPEC to increase its output limits and help reduce energy prices.

So far, however, the group’s policy from August to gradually increase oil production by 400,000 barrels per day each month is perfectly fine by the OPEC members and its allies, which include Russia. The program “is working well and there is no need to deviate from it,” Angola’s oil minister Diamantino Pedro Azevedo said Sunday.

Kuwait also said Monday that the organization should hold to its current plan because oil markets were “well-balanced,” and fellow OPEC members Iraq, Nigeria and Algeria all issued similar statements.

For the consumer, things don’t feel well-balanced. Brent crude reached more than $86 a barrel in late October, a three-year high, and has surged more than 60% this year alone. It has fallen in the days ahead of the OPEC meeting, trading at $81.86 per barrel at 7:20 a.m. in London on Thursday.

West Texas Intermediate is up more than 70% this year and has hit its highest levels in seven years, recently touching $85 a barrel, though it was trading at $80.44 a barrel on Thursday at the same time in London. American gasoline is also at a seven-year high.

For OPEC+ ministers, the word of the month is caution, said Herman Wang, senior oil writer at S&P Platts.

“Despite all of the pressure from the US, India and Japan to release more crude oil, we’ve heard many ministers cite Covid-19 rates and the expected seasonal drop-off in oil demand once the calendar turns in justifying a more conservative approach and sticking to their plans,” Wang told CNBC.

“The price surge may very well be transitory, but until the market cools, OPEC+ can expect to hear a lot more complaints from its key customers.”

Frustrated oil importers also can’t do much to force OPEC’s hand — the U.S. could use crude from its strategic petroleum reserves, Bell wrote, in an attempt to bring down prices. But that is a dramatic move typically kept for emergency cases like natural disasters or war, and the U.S. call for OPEC countries to pump more oil also contradicts its purported aim to lead globally in climate change policy.

As a result of all this, Bell wrote, “we remain of the view that oil prices will stay high until the end of 2021 and likely bleed into the early parts of next year.”

ShareTweetPin
Magical Trade

Magical Trade

Related Posts

Exxon vs. Chevron? Goldman Sachs reveals its favorite — and other energy picks

by Magical Trade
March 22, 2023
0

Energy stocks dropped last week as oil prices fell to a 15-year low , with the banking crisis roiling markets....

Euro pushes higher as ECB chief Lagarde says inflation is still too high

by Magical Trade
March 22, 2023
0

European Central Bank (ECB) President Christine Lagarde announces a new monetary policy decision. Frederick Florin | Afp | Getty Images...

Gold prices could notch an all-time high soon — and stay there

by Magical Trade
March 22, 2023
0

In this article CSG.N-CH Follow your favorite stocksCREATE FREE ACCOUNT Investors have been flocking to gold and Treasurys as bank...

UK inflation rate breaks 3-month stretch of declines with surprise rise to 10.4%

by Magical Trade
March 22, 2023
0

U.K. inflation data paints a picture of the British economy. Bloomberg / Contributor / Getty Images U.K. inflation unexpectedly jumped...

Virgin Orbit returning ‘small’ team from unpaid pause on Thursday to prep for next rocket launch

by Magical Trade
March 22, 2023
0

In this article VORB Follow your favorite stocksCREATE FREE ACCOUNT Virgin Orbit flew its modified Boeing 747 airplane "Cosmic Girl"...

Next Post

Tencent launches three new chips as China's tech giants bolster efforts in semiconductors

New Jersey Gov. Phil Murphy projected to win reelection after surprisingly tight race

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:



By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • Fund manager believes FAANG is dead — says now it’s all about MANTA

    0 shares
    Share 0 Tweet 0
  • Forget Tesla — this auto stock is the one to buy right now, analyst says

    0 shares
    Share 0 Tweet 0
  • Bank of America names its top global tech stocks — including one it says has upside of 100%

    0 shares
    Share 0 Tweet 0
  • Josh Brown says Nvidia’s potential is ‘scary’ ahead of a potential AI boom

    0 shares
    Share 0 Tweet 0
  • This idiot-proof portfolio has beaten traditional stocks and bonds over 50 years

    0 shares
    Share 0 Tweet 0
  • Home
  • Trade News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.magicaltrade.net
No Result
View All Result
  • Email Whitelisting
  • Home
  • Privacy Policy

All rights reserved by www.magicaltrade.net