OPEC Convenes to Discuss Output Increase as Oil Prices Surge – Reuters

LONDON (Reuters) – OPEC and its allies are scheduled to meet on Monday to discuss how much oil to release into a surging market, where supply disruptions and a rebound in demand following the coronavirus pandemic have driven oil prices above $80 per barrel.

The recent surge in oil prices, reaching a three-year high, is compounded by an even steeper rise in gas prices, which have soared by 300%, nearing the equivalent of $200 per barrel. This escalation is attributed to supply shortages and reduced production of alternative fuels.

In July, the Organization of the Petroleum Exporting Countries and partners led by Russia, collectively known as OPEC+, agreed to increase output by 400,000 barrels per day each month until at least April 2022 as part of a gradual unwinding of existing cuts totaling 5.8 million barrels per day.

According to four sources within OPEC+, producers are contemplating increases beyond the previously agreed volumes, though specific details regarding the amount or timing of any increase have not been disclosed.

The earliest any increase could take effect is November, following the decisions made at OPEC+’s last meeting regarding October’s production levels.

The rise in oil, gas, coal, and power prices is contributing to inflationary pressures globally and is hindering economic recovery.

A senior advisor to U.S. President Joe Biden recently met with Saudi Crown Prince Mohammed bin Salman in Saudi Arabia. While the primary discussion focused on the conflict in Yemen, concerns regarding oil were also addressed.

In September, Russian oil and gas condensate output reached 10.72 million barrels per day, marking the highest level since April 2020, when production stood at 11.34 million barrels per day.