Oil Prices Soar Past $81, OPEC+ Won’t Budge From Gradual Supply Increase Despite Demand

On Monday, oil prices soared to the highest point in several years. This news comes as OPEC (Organization of the Petroleum Exporting Countries) and various allies are maintaining their current strategy of a gradual increase in oil supply, rather than increasing global output as requested by consumers.

“By 8:45 AM ET (1245 GMT), U.S. crude futures were up 1.7% at $77.17 a barrel, climbing to a new seven-year high, while Brent futures were up 1.9% at $80.81 a barrel, surging above $80 again,”  explained Investing.com.

According to the outlet, ministers from OPEC+ (OPEC, Russia, and other allies) are “due to meet online later Monday, with the market eagerly awaiting to see whether they decide to go beyond the existing deal to add 400,000 barrels per day to supply every month until at least April 2022.”

The United States (the largest consumer in the world) and India (the third largest consumer in the world) are among those putting pressure on OPEC+ to increase oil supply to the global market in order to reduce prices.

“Energy shortages in China and Europe ahead of the winter have led to discussion on increasing crude oil supply by more than the currently agreed monthly increment of 400Mbbls/d – a one-time increment of 600Mbbls/d or even 800Mbbls/d for November remains on the table to fill the supply gap,” said a note from analysts at ING.- READ MORE