On Tuesday the 2nd of November 2021, oil prices rose as the Organization of the Petroleum Exporting Countries (OPEC) failed to achieve its plan to increase output in October.
Brent oil futures were up 0.28% to $84.95 by 2:30 AM GMT and WTI futures were up 0.24% to $84.25. Data released from the U.S. Energy information Administration (EIA) and U.S. production shows that demand for a plethora of energy products are increasing, and crude oil prices are likely to push higher above the $85 mark.
Crude oil has attained its highest prices in recent weeks, This is as a result of the high demand fomented by the post — pandemic rebound.
OPEC+ continues to systematically improve monthly production to 400,000 barrels per day as major oil perveyos call for more supply in the oil market. The increase in OPEC’s oil output in October fell short of the rise planned under a deal with allies, a Reuters survey found on Monday.
In October 2021, OPEC+ produced 27.50 million barrels per day. Output from OPEC+ has steadily increased by 190,000 (bpd) compared to the previous month. Production remains below the 254,000 barrels per day increase permitted by the Organization of the Petroleum Exporting Countries supply deal per country. Thus, Higher supplies from producers such as Saudi Arabia and Iraq were offset by reflexive outages in some smaller producers.
As OPEC+ next meeting lines up for Nov 4, China, the largest importer of oil, has intensified refinery run rate in order to prevent diesel shortage.