Economy
OPEC+ Won’t Raise Oil Production Output Despite US Pressure
OPEC+ decided against increasing oil production despite pleas from oil-hungry nations and US pressure. Instead, it decided to continue with its original August plan and not to go beyond that.
As a result, it will only gradually increase oil production by 400,000 barrels per day each month.
RELATED: Oil Prices Hit $75/Barrel As OPEC Members Remain Divided
OPEC+ Will Not Increase Oil Production Beyond Original Plans
In a news conference last Thursday, Russian Energy Minister Alexander Novak reiterated the group’s decision to not go beyond its original plan for gradual increases in oil output.
“The decision was made previously to increase production by 400,000 (barrels per day) every month,” he said. “And I underscore every month, until the end of 2022.
Today the decision was reiterated to maintain current parameters which were decided on earlier.”
Reporters asked Novak why OPEC+ won’t increase oil production despite requests from the US, India, and Japan. These three countries are some of the world’s largest consumers of petroleum products.
Novak said that OPEC+ is actively maintaining market balance. As a result, they remain wary of potential changes in demand.
OPEC+ Is Actually Increasing Oil Production, But Only Gradually
“From August until now, we have added 2 million barrels of additional production to the market,” Novak said. “So as planned, we are giving the market more and more volume, as it is recovering.
At the same time we also see there is a seasonal drop in demand in the fourth and first quarters of the year,” he added. Novak also noted that they observed a drop in demand from the EU in October.
As a result, Novak and the rest of OPEC+ concluded that demand remains very fluid. This “basically underscores the fact that global oil demand is still under pressure from the delta Covid variant,” he said.
He said that demand will continue to fluctuate “due to the preservation of various limitations and Covid measures in some countries.”
Oil Prices Hit Record Highs Since 2014 Due To High Demand
Contrary to OPEC’s assertion, the global market continues to demand oil as many economies are now fully reopening. Oil prices recently posted their highest prices since 2014.
Crude importers such as India and Japan are feeling the pinch. In the US, President Joe Biden blamed OPEC+ for limiting oil production and pushing prices higher.
Biden huffed that “Russia and Saudi Arabia and other major producers” get to withhold increasing oil production “is not right.”
Meanwhile, the United Arab Emirates Energy Minister Suhail Al Mazrouei stressed they are working with their customers. “I would like to reiterate the importance of the consuming nations to us as producers.
They are our partners, we work with them to move to a smooth recovery after the pandemic,” Al Mazrouei said. As a result, it’s crucial for OPEC+ to take the right measures.
He said that the group expects a surplus in supply by the first quarter of next year.
OPEC+ Makes Oil Prices Reasonable Compared to Coal and Natural Gas
In addition, several OPEC+ ministers pointed to the outrageous rise in the prices of natural gas and coal. “You look at the gas market, you look at the coal, the lack of having a governor of the market makes it so difficult for the consuming nations when it comes to a huge increase in the commodity prices,” Al Mazrouei said. “We haven’t seen that happening to oil in the same magnitude because of this group.”
Watch the Arirang News video reporting that OPEC+ dismisses U.S. calls to raise oil output:
Loading ...Do you agree or disagree with OPEC+ decision to continue their gradual increase in oil production? Will this be better for the global economy burdened with high oil prices?
Let us know what you think. Share your thoughts in the comments section below.
14 Comments
Let’s look at this from a commonsense approach. We have a total idiot in the White House that has no goddamn clue on what he is doing and his socialist handlers are doing everything in their powers to tank the US economy as fast as they can. Good job liberals for voting for this idiocy!! Don’t you worry though, Big Daddy Government says they have it covered and you have nothing to worry about,……………..even when gas prices hit $7 a gallon!!
DON’T BUY THEIR OIL . THEY CAN’T MAKE ANYTHING IF THEY DON’T SELL ANYTHING . LETS GET THAT PIPELINE GOING. COME ON PREZ. GET YOUR HEAD OUT OF YOUR A– .
Why would anyone leave there livelihood in the hands of someone else? We have the means and ability to sustain ourselves, let’s stop depending on others to supply our oil needs and give our people their jobs back and reopen the pipeline. When we don’t buy their oil they will feel the crunch. Joe Biden has to be the dumbest of all the fake Presidents and ever had. TRUMP was the only guy qualified constitutionally to be President because he wasn’t a lawyer and didn’t have a title of nobility from the Queen, let’s get our guy back in the White House and watch how things get better for all people!
Thanks Brandon. We used to hang people like you for treason.
I agree with all the above 100%
Paul your wrong you much like the confederates are on the wrong side of history. Much like the traitor confederacy you have shown your colors and if you continue the full night of the us military will smash you and your fellows
Branden, not really too worried about the full”night” of the military (of which I was a member). You should be more concerned about how we’ve all been “smashed” by the so-called leaders who are supposed to be our employees, and who have sworn to preserve, protect, and defend the constitution of the U.S. I respect your right to your opinion, even if your government doesn’t.
I wish I could say ruining USA energy independence was the worst thing Biden has done so far but the list is long and just keeps growing!!! Every time I think the bar can’t get any lower Biden proves me wrong. Let’s Go Brandon!!!
Let’s go Brandon!!
BBA…. you hit the nail right on the head ….but just remember in the 50s and 60s we helped build the oil wells we helped build their pipelines….. and it’s coming back to bite us in the ass … what else do they have over there do you have a Saudi Arabia car …. Saudi Arabia TV … Saudi Arabia washing machine … no because to my knowledge they don’t manufacture anything it’s all imported because of the profits from the oil that we help build the pipe lines …. The wells and their economy …. and because of sleepy Joe’s administration we’re going to suffer …. Big time !!!
Paul you just said that you’d hang me and then said you respect my opinion? If you were actually a member of the military you’d know that statement alone is a domestic threat and you should be opposed… our government is just that our government we voted them there to represent us and if on side or the other has “power” it’s because the majority has decided it’s time for the pendulum to swing that way nothing in a democracy is permanent and we all should respect the losses we take and do more to get our message out not just sit on lies told to us. If we truly think for ourselves we will have different opinions and that is what makes America great not the ideas of one side or the other but the attempt to understand the other side and make compromises to get what we all want out of our government hanging people because of a belief is treasonous in its thought we can do better and have I hope one day this civil war nonsense and “cultural war” we have begun will stop and we can go back to having a honest discussion of ideas not threats and populism
1. FUCK JOE BIDEN.
2. REINSTATE ALL TRUMP’S ENERGY IDEAS AND POLICIES AND TELL THE OPEC RAGHEADS TO GET FUCKED IN THE ASS WITH A HOT POKER.
Biden creates rhis problem. Dems need to admit the mistake and restart our production!
We did not have this problem until Biden entered the White House. We were oil independent.
Let’s go Brandon