June 7, 2023

Dubai Week

Complete Dubai News World

Oil rises 2.7% after the end of "OPEC +" in production

Oil rises 2.7% after the end of “OPEC +” in production

– How high is the price of oil?

More than 2.7%.

– What is the reason for this increase?

Production is expected to increase to 400,000 barrels in January.

Crude oil prices rallied more than 2.7% on Friday, after the “OPEC +” alliance opened the door to adjust production by the end of December, in line with the development of the “Omicron” mutation.

Brent crude rose 2.77% to $ 71.6 a barrel, while US West Texas Intermediate crude futures rose 2.7% to $ 68.3 a barrel.

On Thursday, the price of crude closed more than 1%, but when it fell to its lowest level in almost a year under the pressure of “Omicron” concerns, it is still 2.2% lower than it ended last week.

The energy ministers of the OPEC + alliance, which includes Saudi Arabia-led OPEC and Russia-led 23 oil-producing countries, were surprised to see production increase by 400,000 barrels in January, contrary to expectations. Freezing it.

But after the meeting on Thursday, the ministers said by video conference that the coalition could reconsider increasing production ahead of the next meeting on January 4. Markets.

Coalition ministers said in a statement that they would be at a permanent meeting to monitor markets in line with the development of the new transition.

The decision of “OPEC +” to sustain the increase in production was welcomed by the US administration, which put pressure on its partners among manufacturers to inject more crude oil into the market.