OPEC meets on rising production as oil prices recover

The logo of the Organization of the Petroleum Exporting Countries (OPEC) can be found in front of its headquarters ahead of the OPEC and NON-OPEC meeting in Austria on December 6, 2019. REUTERS / Leonhard Foeger / File Photo

LONDON, Oct. 3 (Reuters) – OPEC and its allies meet on Monday to discuss how much oil to dump in the scorching market, where supply disruptions and resumption in demand following the coronavirus pandemic have pushed oil above $ 80 a barrel.

The rebound in oil prices to a three-year high is exacerbated by an even larger increase in gas prices, which soared 300% and traded at nearly $ 200 a barrel due to supply shortages and low production of other fuels.

The Organization of the Petroleum Exporting Countries and its Russian-led allies, known as OPEC +, agreed in July to increase production by 400,000 barrels per day each month until at least April 2022 to phase out gradually 5.8 million barrels per day from existing cuts.

Four OPEC + sources told Reuters last week that producers were considering adding more than this envisaged deal, but none gave details on the additional amount or when the supply would increase. Read more

The closest month an increase could occur is November as the last OPEC + meeting decided on October volumes.

Rising prices for oil, gas, coal and electricity are fueling inflationary pressures around the world and slowing the recovery.

A senior official for US President Joe Biden met with Saudi Crown Prince Mohammed bin Salman in Saudi Arabia last week to discuss the war in Yemen, but said the oil was also “of concern”. Read more

Russian production of oil and gas condensate reached 10.72 million bpd in September, the highest level since the 11.34 million bpd pumped in April 2020, according to data released on Saturday. Read more

OPEC team reporting, written by Dmitry Zhdannikov, editing by Andrew Heavens

Our Standards: Thomson Reuters Trust Principles.

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