Oil prices fall as OPEC+ sticks to gradual output hikes

Oil pump jacks on Canadian Prairie. (Mike Grandmailson)

SULAIMANI (ESTA) — Oil prices fell on Thursday after OPEC and its allies agreed to stick to their existing policy of gradual oil output increases.

Brent crude fell 21 cents to touch at $71.38 a barrel at 0626 GMT and U.S. West Texas Intermediate (WTI) crude dropped by 26 cents to settle at $68.33 per barrel.

OPEC and allies led by Russia, a group known as OPEC+, agreed to stick to a policy from July of phasing out record output cuts by adding 400,000 barrels per day (bpd) a month to the market.

The group revised up its 2022 demand outlook and faces U.S. pressure to raise production more quickly, according to Reuters.

“While the effects of the COVID-19 pandemic continue to cast some uncertainty, market fundamentals have strengthened and OECD stocks continue to fall as the recovery accelerates,” OPEC+ said in a statement.

OPEC+ has fulfilled a goal of removing excess oil from the global market and it is important to keep the market balanced, Reuters cited Russia’s top negotiator, Alexander Novak, as saying.

Previous Article

Iraqi soldier killed, six civilians injured in ISIS attack south of Kirkuk: source

Next Article

Iran determined to increase oil exports despite U.S. sanctions: minister

Related Posts
Total
0
Share