OPEC + will continue to increase oil production cautiously

Saudi Arabia and the United Arab Emirates (UAE) have indicated that the OPEC + alliance will continue to increase oil production cautiously and will not succumb to US pressure to pump commodities into markets faster. President Joe Biden is concerned about high gasoline prices, which have already reached a seven-year high in the United States and are contributing to accelerating inflation in the United States. He therefore called on the 23-member alliance of the world's largest oil producers to open the taps and help depress prices. OPEC +, led by Saudi Arabia and Russia, is currently increasing its daily production by 400,000 barrels (1 barrel = 159 liters) per month. "The 400,000 continues and that should be enough," said UAE Minister of Energy Suhail bin Mohammed al-Mazroui in Abu Dhabi, where he is attending the Adipec oil and gas conference. The Organization of the Petroleum Exporting Countries (OPEC) and its OPEC + partners will meet next December to discuss mining policy. Oil prices have risen about 60 percent this year to over $ 80 (€ 69.88) a barrel, with several energy managers and leaders, such as Russian President Vladimir Putin, saying they could reach as much as $ 100 / barrel. According to the UAE Minister of Energy, the oil market will switch from a supply deficit to a surplus at the beginning of next year, which is one of the main reasons why OPEC + will not be aggressive in increasing market supply. Saudi Arabian Energy Minister Abdulaziz bin Salman also confirmed his words, adding that oil markets are currently relatively calm compared to coal and natural gas markets, whose prices reached record highs last month. Oil stocks in storage facilities around the world have fallen rapidly since OPEC + in early 2020, following the outbreak of the new coronavirus pandemic, has significantly reduced supplies. But they will start rising again next month, the Saudi minister said. "OPEC + is fulfilling its duty," he added. The Omani Minister of Energy also noted that OPEC + does not need to accelerate production growth. At its December meeting, the group will probably decide to continue its current policy of increasing production by 400,000 barrels per month.