Oil cartel OPEC is considering increasing production by half a million barrels daily at its meeting in December. This was reported by the American business newspaper The Wall Street Journal based on sources at OPEC.
OPEC will discuss production with allies such as Russia on December 4. The oil alliance (OPEC+) had previously cut production considerably to prop up oil prices. The price of Brent oil chopped below $85 a barrel (of 159 litres) for the first time since September on Monday. This is mainly due to concerns about weaker demand from China due to fears of even stricter corona lockdowns in the country.
But OPEC leader Saudi Arabia and other countries within the cartel would therefore consider increasing production despite the falling prices. In addition, according to The Wall Street Journal, the administration of President Joe Biden has asked an American court to endow Saudi Crown Prince Mohammed bin Salman immunity.
In effect, that means he cannot be impeached in the United States, where Bin Salman has been charged with participation in the murder of journalist Jamal Khashoggi. The Saudis would therefore like to reward Biden for this step because higher oil production could cause prices at the pump to fall further.
Reports of increased production pushed oil prices down even further on Monday. A barrel of Brent fell 5 percent to $ 83.29, and US WTI oil fell 5.3 percent cheaper to $ 75.82 a barrel.
Be First to Comment