OPEC and its allies have rejected United States President, Joe Biden appeal to pump more oil days after agreeing to keep output steady as the price continues to surge unabated due to the pace of economic recovery and growth in global demand. In the New York Mercantile Exchange, January crude futures passed $81 a barrel while Brent Crude futures settled at near $83 a barrel on the London Intercontinental Exchange by over $2.
The US President through his Energy Secretary, Jennifer Granholm has called on oil-producing countries to increase crude supplies immediately so people won’t be hurt by high prices during the winter months. Although OPEC+ are committed to continuing with plans to gradually increase oil production by 400,000 BPD next month, a range of tools are been prepared to combat the surging gas prices after the unchanged decision.
Furthermore, traders now have to contend with the possibility of increased Saudi Arabian production on top of rising supply concerns in the US. Baker Hughes Co reported the number of U.S. rigs rose by six last week to 550, further indicating tighter supply.
