As OPEC+ still holds a major grip in the international oil market, crude oil price traded nearly $80 per barrel. Thus the eminent meeting with ministers will prove crucial in determining the price in months to come.
On the other hand Saudi Arabia has generated the highest petroleum profit since 2018 and before the pandemic hit. Furthermore, US officials who asked for their names to be undisclosed stated that the the united states government are pleased with the tenacious supply slog in the oil market. Members of OPEC have also banded together to resuscitate the 400,000 barrels a day production level.
Amrita Sen co-founder of Energy aspect Ltd said “As long as prices are between $70 and $80 a barrel, “the urgency to act beyond the current deal”
OPEC’s meeting which will be held via video conference on Monday will provide an opportunity to reduce the exacerbating atmosphere as a result of pandemic dispute from production level disagreement between gulf countries as well as price conflict between Saudi Arabia and Russia.
Tussle which emanating from external crises may affect the equilibrium which OPEC has struggled to attain. For example the scarcity of natural gas has resulted to hike in fuel price to about $189 per barrel.
Production has been cut my over 34 million barrels in the united states of America as hurricane slammed the gulf of mexico approximately a month ago. With food price predicted to rise food and energy consuming nations are at risk of experiencing a high rate on inflation.