Frankfurt: OPEC and allied oil-producing countries agreed to add 400,000 barrels per day in November, keeping with their cautious approach to restoring oil production during the pandemic.
Monday’s decision by the Vienna-based oil cartel tracks with its established program of adding back that volume of oil each month until the cuts made during the depths of the pandemic recession are restored.
The decision comes amid tighter oil markets, as driving and flying pickup around the world due to the easing of restrictions aimed at containing the COVID-19 pandemic.
The price of a barrel of crude oil rose 3%, or $2.32, to $78.17 on the New York Mercantile Exchange.
OPEC and its allies Seeing the tight oil market?? Lewis Dixon, senior market analyst at Rystad Energy, said at their September meeting when parts of China were under lockdown and fears of a more contagious delta version of the coronavirus spreading.
Oil rose 0.3% to $76.12 a barrel on the New York Mercantile Exchange on Monday, while international benchmark Brent crude was trading 0.4% higher at $79.63.
Brent briefly held above $80 a barrel last week, underscoring concerns about prices in the US, where higher crude oil prices could mean costly gasoline for motorists.
White House national security adviser Jake Sullivan raised concerns about rising oil prices when he met officials in Saudi Arabia earlier this week focused largely on the war in Yemen, a senior administration official said. According to the official, who spoke on condition of anonymity to discuss privately. Conversations.
The official said Sullivan and other members of his delegation reiterated the importance of creating conditions to support the global economic recovery caused by the coronavirus pandemic.
Earlier this week, White House Press Secretary Jen Psaki said White House officials had been in communication with OPEC about prices and were looking for tools to address the issue since Brent crude last month. was above $80 a barrel, the highest price in nearly three years.
According to the Motoring Club Federation AAA, US national average gasoline prices have held steady at around $3.20 a gallon in recent days, which has kept stable short-term gas prices largely in sync with supply and demand. ??
The average is 97 cents higher than a year ago.