Tuesday, November 29, 2022

OPEC+ decides against production increase, oil reaches three-year highs

On Tuesday, Brent crude oil futures stuck near three-year highs, with U.S. benchmark crude close to 2014 peaks.

• October 6, 2021
Oil rig
Oil rig

On Tuesday, Brent crude oil futures stuck near three-year highs, with U.S. benchmark crude close to 2014 peaks.

This came after the OPEC+ supplier group decided to stick to a gradual output increase plan rather than fully opening the taps.

Brent crude was up 51 cents or 0.6 per cent at $81.77 a barrel by 0845 GMT, having risen 2.5 per cent on Monday.
U.S. West Texas Intermediate (WTI) oil rose 50 cents or 0.6 per cent to $80.98 after gaining 2.3 per cent the previous session.

Oil prices have already surged more than 50 per cent this year, a rise that has added to inflationary pressures that crude-consuming nations such as the U.S. and India are concerned will derail recovery from the pandemic.

Despite the pressure to ramp up output, OPEC+ was concerned that a fourth global wave of COVID-19 infections could hit the demand recovery, a source told Reuters a little before the vote.

Russian Deputy Prime Minister, Alexander Novak, said after the talks he believed the market is now balanced.

“$80+ Brent price might feel toppy, and the move up yesterday might look exaggerated,’’ PVM analysts said, pointing to falling stock markets and shrinking supply deficits. “But prices are only seen uncomfortably high until the first cold spell arrives in the northern hemisphere creating additional demand and triggering a fresh bout of buying.’’

Meanwhile, U.S. crude oil and distillate inventories are likely to have fallen last week, according to a preliminary Reuters’ poll.

Five analysts surveyed by Reuters estimated on average that crude inventories declined by about 300,000 barrels in the week to October 1.


We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

INEC chairman Mahmood Yakubu


Attacks on our facilities won’t stop 2023 elections: INEC

INEC said it would replace election materials that were lost in the attacks ahead of 2023.

Bruno Fernandez celebrates goal against Uruguay


Qatar 2022: Manchester United duo send Portugal, Brazil to World Cup round of 16

Manchester United duo of Bruno Fernandes and Casemiro netted the winners in both important fixtures.

Nasiru Idris


2023: I’ll establish ministry to tackle political thuggery, APC guber candidate says

Nasiru Idris said the ministry would also be mandated to fish out drug addicts across Kebbi.

Elon Musk

Hot news Home top

Apple wants to remove Twitter from its store: Elon Musk

Mr Musk also claims that Apple has suspended majority of its advertisements on Twitter.


National Sports Festival: 14,000 athletes to compete for medals in Asaba

The 36 states and the FCT will be competing in over 30 different sports in the festival.

Nigeria Exchange (NGX)


NGX: Investors lose N64 billion in bearish trading

The downturn was due to sell-offs in tier-one banks and industrial stocks such as Zenith Bank, Stanbic Bank and BUA Cement.