Oil Price Rises after OPEC+ Rejects Call for More Supply

Aaron Sheldrick;
Friday, November 5, 2021

Oil prices rose more than 1% on Friday, staging a partial recovery after OPEC+ producers rebuffed a U.S. call to raise supply and instead maintained plans for a gradual return of output halted by the pandemic.

Brent crude rose 82 cents or just over 1% to $81.36 a barrel by around 0146 GMT, after falling almost 2% on Thursday. U.S. oil gained 97 cents or 1.25 to $79.78 a barrel, having declined 2.5% in the previous session.

The OPEC+ group of major producers agreed on Thursday to stick to their plan to raise oil output by 400,000 barrels per day (bpd) from December, ignoring calls from U.S. President Joe Biden for extra output to cool rising prices.

"This was an easy and quick OPEC+ meeting on output," said OANDA senior market analyst Edward Moya, adding "at no point did OPEC+ consider changing their output strategy, which was completely the message they had."

OPEC+, which groups the Organization of the Petroleum Exporting Countries (OPEC) and other large producers including Russia, has been restricting supply after the coronavirus pandemic led to evaporation of demand.

Oil prices recently touched seven-year highs, but fell earlier this week on a U.S. stocks buildup and signs that high prices may encourage more supply elsewhere.

Brent is on track for a nearly 4% decline this week, the second straight week the contract has fallen. U.S. oil is heading for a decline this week of nearly 5%.

(Reporting by Aaron Sheldrick; editing by Richard Pullin)

Categories: Production Oil Price

Related Stories

Oil Slips as Oman Reports Normal Operations at Key Oil Terminal

Inpex Faces Threat of Broad LNG Loading Ban as AU Labour Dispute Deepens

INEOS Inks LNG Supply Deal with Marubeni for Asian Markets

Cambodia Starts UN Process to Resolve Maritime Dispute with Thailand

Azerbaijan’s Absheron Gas Project Advances with New Sales Agreement

BP Launches Gas Production at Azerbaijan’s Giant ACG Field

Iran Restarts Output at Three South Pars Offshore Gas Platforms

Oil Jumps Over 3% After US-Iran Exchange Attacks

Mitsui Eyes New LNG Investments to Power Data Center Growth

Norway O&G Revenue Forecast Jumps 30% for '26

Current News

Oil Slips as Oman Reports Normal Operations at Key Oil Terminal

Petronas Signs Offshore Oil Recovery Collaboration Deal

SBM Offshore to Sell 45% Stake in Mexico-Bound FSO to NYK

Conrad Secures Drilling Rig for Mako Gas Field off Indonesia

Oman’s Block 50 Offshore Drilling Ops Face Further Delays

Aramco Picks McDermott for Energy Projects in Saudi Arabia

Velesto’s Jack-Up Rig Up for Gulf of Thailand Drilling Campaign

Kuwait Sees 70% Oil Output Recovery within Two Months of Hormuz Reopening

Capricorn Energy Grants Third Extension for Potential Takeover Offer

Ichthys LNG Strike Causes Delay to Taiwan-Bound Cargo

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com