Oil Prices Rise As OPEC+ Meeting Approaches

As OPEC’s meeting draws closer, oil prices rose on Thursday. The Organization of the Petroleum Exporting Countries and its allies will continue to produce at lower pace irrespective of the U.S  and influential importers demanding output increase to reduce price pressure.

Brent Crude  increased by 1.2%, to $82.93 a barrel by 0940 GMT and U.S. West Texas Intermediate crude rose by 0.8%, to $81.48.

OPEC+ will meet on Thursday to reinforce the monthly supply increase at 400,000 per day. The price of crude oil has been on an irregular trend due to weak supply associated with a strong demand which in turn has created an in equilibrium in the oil market.

Market research analyst Ahsan Khoman explained that investors are eager to see the outcome of the OPEC meeting as a result of the marginal shift in price this week

His words  “Oil prices have traded in a narrow range thus far this week, with investors assessing the likelihood of OPEC+ succumbing to pressure to add more crude to global oil markets as well as deliberations from the Federal Reserve policy meeting”

Major oil producers such as Saudi Arabia and Russia are expecting no reaction from the  US oil shale industry as the United States are against OPEC’s sluggish production method.

Furthermore, A large amount of oil companies are restrategizing production methods to increase supply, which could temporarily break OPEC’s monopoly. Iran, has also demanded that the United States drops sanctions that have limited its oil exports.

As pressure mounts on OPEC+ to increase supply, the much anticipated meeting will prove crucial in the trend of oil prices in the coming weeks.