OPEC+ committee recommends 400,000 b/d November crude production increase
4th October 2021 13:14 GMT

OPEC and its allies appear unbowed to the pressure of prices, with a key committee recommending Oct. 4 to increase crude oil production in November by just the 400,000 b/d originally intended, according to several delegates -- apparently ignoring calls by key customer the US to cool off the market.

The recommendation must be ratified unanimously by the 23-country OPEC+ coalition, which meets later in the day.

Oil prices have touched three-year highs in recent days, with front-month ICE Brent futures surpassing $80/b.

US officials, concerned about rising domestic fuel prices, had dispatched national security adviser Jake Sullivan to Saudi Arabia for meetings Sept. 28 with leaders, including Crown Prince Mohammed bin Salman, where oil was on the agenda.

US officials have previously complained that the OPEC+ alliance's plans to gradually ease its historic production cuts by 400,000 b/d each month were insufficient.

But internal forecasts reviewed by OPEC+ delegates showed global oil demand growth of only 700,000 b/d between September and December, which would seem to support a cautious approach.

Demand would continue to outpace supply by 1.2 million b/d in October and 900,000 b/d in November, before the market then flips into a 100,000 b/d surplus in December, if the OPEC+ alliance was to maintain its prescribed monthly output increases, according to the analysis seen by S&P Global Platts.

Bunkerworld .,
4th October 2021 13:14 GMT