RT.com
01 Dec 2021, 15:42 GMT+10
The Organization of the Petroleum Exporting Countries (OPEC) is not sticking with the planned oil production increase in November under the OPEC+ deal. This comes despite the calls from US President Joe Biden to boost oil output.
According to a Reuters survey published on Tuesday, the group's crude oil production rose by 220,000 barrels per day, 13% short of the boost that OPEC should be providing.
Under the OPEC+ deal reached earlier this year, 10 OPEC member-states are to boost their combined production by 254,000 barrels per day each month, while the bloc's non-member allies, including Russia, are to contribute 146,000 barrels per day more. The total OPEC+ supply increase should reach a total of 400,000 barrels per day through next year, until oil production hits pre-Covid-19 pandemic figures.
However, according to the survey, some OPEC members don't have the capacity to produce more. While OPEC's major producers Saudi Arabia and Iraq complied with their production boost quota in November, Angola, Gabon, and Equatorial Guinea failed to pump more oil. Angola's output slumped by 50,000 barrels per day, with exports dropping to record lows, according to tanker schedules.
OPEC+ is set to meet on Thursday to assess the market and decide on production levels for January, with analysts warning that the group could pause supply increases amid woes over the new Omicron Covid-variant effect on global oil demand. Also, experts say the recently announced strategic oil reserves release by the US and five other major oil consuming countries could force the group to cut production increases, as it could bring about a crude surplus early next year.
READ MORE: Biden's oil gamble: How US tapping its reserves will influence energy crisis
Oil prices rose more than 3% ahead of the OPEC+ meeting, recouping some of the heavy losses earlier this week. Global benchmark Brent crude futures rose $3, or 4.4%, to above $72 a barrel at 09:00am GMT on Wednesday, while US West Texas Intermediate (WTI) rose $2.86, or 4.3%, to $69 a barrel.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Austin Globe news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Austin Globe.
More InformationFRANKLIN, Tennessee: Hundreds of thousands of Nissan and Infiniti vehicles are being recalled across the United States due to a potential...
REDMOND, Washington: Microsoft is the latest tech giant to announce significant job cuts, as the financial strain of building next-generation...
LONDON UK - U.S. stock markets were closed on Friday for Independence Day. Global Forex Markets Wrap Up Friday with Greeback Comeback...
SANTA CLARA, California: Nvidia came within a whisker of making financial history on July 3, briefly surpassing Apple's all-time market...
SACRAMENTO, California: California's multibillion-dollar farms are facing a growing crisis—not from drought or pests, but from a sudden...
WASHINGTON, D.C.: President Donald Trump says the United States could soon reach a trade deal with India. He believes this deal would...
WASHINGTON, D.C.: In a significant ruling last week, the U.S. Supreme Court upheld a Texas law requiring age verification for users...
Around two dozen girls remain missing after a deadly flash flood swept through a local Christian camp Deadly flash flooding in the...
(Photo credit: Ronald W. Erdrich/Reporter-News / USA TODAY NETWORK) Four-star wide receiver Kaydon Finley has committed to Notre...
(Photo credit: Geoff Burke-Imagn Images) Former NFL linebacker Bryan Braman is 'in the fight of his life,' battling a rare and aggressive...
(Photo credit: Isaiah J. Downing-Imagn Images) Colorado coach Deion Sanders, who has been suffering from an undisclosed medical condition,...
(Photo credit: Stephen Brashear-Imagn Images) Dan Wilson and Ken Griffey Jr. were teammates when the latter hit a franchise-record...