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OPEC+ decides to go ahead with output plan defying US demands

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OPEC+ decides to go ahead with output plan defying US demands
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RIYADH: The members of the Organization of Petroleum Exporting Countries and their allies, popularly known as OPEC+ have decided to go ahead with crude production level as per their agreement and to put out 400,000 barrels a day a month till the end of 2022 as had planned earlier.

The decision, however, is not in line with the US demand who wanted the conglomerate to double the production of what they additionally pump to the market monthly, a report published in the Arab News said.

Anticipating a surplus pumping of oil in early 2022, all OPEC+ ministers agreed not to increase the oil output, prompting the US to believe the OPEC+ is withholding deliberately supplies.

Saudi energy minister Prince Abdulaziz bin Salman countered the US allegations saying as an oil market regulator the OPEC+ does a good job.

While the UAE oil minister Suhail AlMazrouei said that the OPEC+ does not look for a specific price target for oil, Mohammad Al-Fares, Kuwait's Minister of Oil said that it would ensure the oil market is enough supplied in order to avoid an overflow in the market as had many indicators pointed out for 2022.

Several countries — including the US — have called on the alliance to raise its production levels, yet the group seems to be persistent on its plans.

The White House wants OPEC+ to increase its monthly supply ceiling to the range of 600,000-800,000 thousand barrels a day, according to delegates and diplomats cited by Bloomberg.

This is compared to the current 400,000 barrels a day plan.

Brent crude oil price was up by 0.85 per cent to $82.69 a barrel as of 11:43 am Riyadh time while US Texas Intermediate crude (WTI) increased to $81.41 per barrel at 11:59 am Riyadh time.

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