The Organization of the Petroleum Exporting Countries (OPEC) and its allies – the so-called unification OPEC + decided to stick to the plan to increase production with 400,000 barrels per day since December, VoA reported.
The countries of the extended format did not accept the US proposal for additional supplies, which would curb the rise in oil market prices.
The White House said that Washington will consider the full range of tools available to ensure the country’s access to energy at affordable prices.
All oil producers suffered from declining incomes during the pandemic from COVID-19. Recovering global demand allows these countries to restore economic growth.
The supply constraint oil agreed by OPEC + countries, led to an increase in prices, where the value of the Brent variety reached 86.70 dollars – the highest price level in three years.
Oil exceeded $ 80 for the first time since 2018
Demand for oil is rising due to high gas prices
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OPEC’s largest producer, Saudi Arabia, has rejected a call for a faster increase in oil supplies, arguing that “economic barriers“.
Sources from OPEC + said that the United States has enough opportunities to increase its own production if it believes that the world economy needs more oil. According to sources, Saudi Arabia and Russia are increasingly convinced that higher prices will not lead to an increase in shale gas production in the United States.
Saudi Energy Minister Prince Abdulaziz bin Salman commented that manufacturers are concerned about possible new failures in the fight against the pandemic, which would affect the recovery of the economy. According to him, oil stocks at the end of 2021 and the beginning of 2022 will “colossally” increase due to a slowdown in demand.
Russian Deputy Prime Minister Alexander Novak said that since August OPEC has added 2 million barrels per day to supplies and will continue the plan to increase them by another 400 thousand barrels in December and the first months of 2022. According to him, there are signs of declining demand. European Union in October due to the spread of the Delta strain.
The president of the United States on Saturday Joe Biden called on major producer countries in the energy sector from G20, having spare capacity to increase their production, for to help the recovery of the world economy.
“It seems that OPEC + does not want to use its capabilities and capabilities at this critical time of global recovery for countries around the world,” the White House said, adding that the United States is ready to use the tools at its disposal.
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OPEC agreement + pump the price of oil
Producer countries are looking for market stabilization
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Organization of the Petroleum Exporting Countries OPEK, including some of the countries with the greatest influence on the world oil market, aims to control price levels through cartel agreements.
OPEC was founded from Venezuela, Iraq, Iran, Kuwait, and Saudi Arabia at an international conference in Baghdad held from September 10 to 14, 1960. Subsequently, Algeria, Angola, Ecuador, Qatar, Libya, Nigeria, and the United Arab Emirates joined the organization. Since 1965, the OPEC headquarters have been located in Vienna. The official language of the organization is English. Its general secretary since 2017 is Mohamed Barkindo.
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