Production Risks Caused an Increase in Oil Prices

Before the OPEC+ meeting, oil prices increased against the risks in Libya and Ecuador regarding production.

Supply concerns in the oil market led to an increase in prices before the OPEC+ meeting. With the United States crude oil again exceeding the level of 111 dollars, Brent oil subsequently recorded a level above 116 dollars. While Libya is experiencing setbacks in oil production and anti-government demonstrations in Ecuador, a former OPEC member predicted that will negatively affect oil production. It is stated that these problems in Libya and Ecuador will negatively affect the market as two oil producing countries. According to Stephen Innes, Co-Founder of SPI Asset Management, as structural bottlenecks persist, more supply is essential for prices to come down significantly. In addition, there are impressions that no additional supply will come from two important members of the OPEC+ coalition. French President Emmanuel Macron stated to the President of the United States Joe Biden that Saudi Arabia and the United Arab Emirates are supplying the highest level they can do. Fatih Birol, President of the International Energy Agency, called for Middle Eastern producers to increase the supply, and gave the following statements: "Oil and natural gas producers need to release oil and natural gas that they do not have on the market without delay and contribute to the stabilization of the market, especially the big oil producers in the Middle East."