Oil Settles Near 3-Year High Ahead of OPEC+ Meeting, Reports Reuters

Oil prices closed above $78 a barrel on Friday, nearing a three-year high reached earlier this week, as expectations grow that OPEC ministers will continue to increase supply steadily.

The Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, are scheduled to meet on Monday. The group has been gradually reversing record production cuts implemented last year, but sources indicate it may consider further production increases.

Brent crude gained 97 cents, or 1.2%, to settle at $79.28, marking its fourth consecutive weekly rise. Meanwhile, U.S. West Texas Intermediate (WTI) increased by 85 cents to close at $75.88, achieving gains for six straight weeks.

Brent prices have surged over 50% this year, reaching a high of $80.75 on Tuesday. OPEC+ is under pressure from major consumers, including the United States and India, to ramp up production in response to a quicker-than-expected recovery in demand in various regions.

Edward Moya, a senior market analyst, noted that if OPEC+ adheres to its plan and raises output by the projected 400,000 barrels per day in November, oil prices could soon approach $90. He added that any increase smaller than 600,000 barrels should also lead to price hikes.

Additionally, the rise in global energy prices is prompting power producers to shift away from gas. Generators in countries like Pakistan, Bangladesh, and in the Middle East have begun changing fuel sources.

Naeem Aslam, an analyst, commented that stable oil prices are largely due to investor belief that the supply-demand gap is set to widen as the power crisis escalates.

In the U.S., energy companies added oil and natural gas rigs for the fourth consecutive week, with several storm-impacted offshore units returning to service in the Gulf of Mexico. According to Baker Hughes Co, the number of active rigs rose by seven to 528, the highest level since April 2020.