Oil witnessed a decline in prices as the industry braces for the meeting between the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia to set the tone of productions policies.
According to Reuters, Brent crude traded down 37 cents or 0.5% at $78.91 per barrel by 0850 GMT.
Traders are hoping that OPEC won't change the output levels as the market still trying to recover from the pandemic hit.
Does OPEC+ need to add additional production above the planned 400 kbd per month?— Anas Alhajji (@anasalhajji) September 30, 2021
- Is there a demand for the additional oil (above 400 kbd) at prevailing prices?
- Yes, production⬆️ (but when?)
- No, stick to the plan#Oil #OPEC #OOTT pic.twitter.com/XDsTuEOWj4
However, the oil cartel is facing some pressure to pump up production in order to cut the prices.
In July, OPEC+ has agreed to monthly increase production by 400,000 barrels per day (bpd) until at least April 2022 aiming to gradually get rid of the 5.8 million bpd existing cuts. In this meeting, producers aim at adding more supply than the agreed-upon OPEC+ deal.
It is worth mentioning that any output volumes boost won't be put into practice until November because October’s was already agreed upon at the OPEC+ previous meeting in September.
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