• 4 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 7 minutes Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 13 minutes NordStream2
  • 16 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 7 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 9 hours California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 20 hours "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 9 hours Did China cherry-pick the factors that affected the economic slow-down?
  • 5 days "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 2 days U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 3 days Nord Stream - US/German consultations
  • 409 days Class Act: Bet You've Never Seen A President Do This.
  • 5 days An Indian Opinion on What is Going on in China
  • 2 days Forecasts for Natural Gas
  • 2 days Australia sues Neoen for lack of power from its Tesla battery
  • 5 days Storage of gas cylinders
  • 5 days Can Technology Keep Coal Plants Alive and Well?
A Successful Energy Transition Will Need Oil Demand Destruction

A Successful Energy Transition Will Need Oil Demand Destruction

While governments and international institutions…

Why OPEC Didn’t Boost Production By 800,000 Bpd

Why OPEC Didn’t Boost Production By 800,000 Bpd

Concern that demand for oil…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

$80 Oil Is No Reason For OPEC+ To Alter Its Production Plan

  • Sources within OPEC+ suggest that the cartel is unlikely to deviate from its current output cut schedule
  • White House Press Secretary Jen Psaki said that the Biden Administration continues to speak with OPEC about the importance of doing more so that oil prices support the economy

Despite the recent rally in oil prices, the OPEC+ group is expected to keep next week its current schedule of easing the collective oil production cuts by 400,000 barrels per day (bpd) in November, sources told Reuters on Wednesday.  

Brent Crude prices hit $80 per barrel early on Tuesday—the highest level in three years, as the global natural gas shortage and price spikes spilled over into the crude oil futures market.  

Oil prices eased at Tuesday closing, also depressed by an unexpected crude inventory build in the U.S. stockpiles last week, as per estimates from the American Petroleum Institute (API).

Oil at $80, however, is making the market and economies jittery over the energy and crude import costs at a time when other energy commodities such as natural gas and coal rally to record highs in major energy-consuming regions.

The pressure on OPEC+ to do more than the planned monthly supply increase of 400,000 bpd started with the oil and energy price rally at the end of last week and continued earlier this week when Brent hit $80.

Major consumers and importers of crude, including China and India, have shown in the past that the $80-a-barrel mark could be a red line beyond which demand destruction begins.

Despite the higher oil prices in recent days, OPEC+ is set to proceed with the planned 400,000-bpd supply boost in November when its members meet for the regular monthly meeting on October 4, according to Reuters’ sources.

“So far we will keep the plan to increase by 400,000 bpd,” one of those sources told Reuters.

As oil was reaching the $80 mark on Tuesday, White House Press Secretary Jen Psaki said that the Biden Administration continues to speak with OPEC about the importance of doing more so that oil prices support the economy.

“We continue to speak to international partners, including OPEC, on the importance of competitive markets and setting prices and doing more to support the recovery,” Psaki told reporters, when asked whether there are any conversations or plans for such with OPEC.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on September 29 2021 said:
    For OPEC+, a Brent crude price of $80 a barrel isn’t a red line. On the contrary it is the price the overwhelming majority of its members with the exception of Russia need to balance their budgets.

    Therefore, there is no reason for OPEC+ to alter its agreed plans to ease its production cuts by 400,000 barrels a day (b/d) in November.

    OPEC+’s role is to balance the market to ensure that it doesn’t dip into a deficit or a glut. And despite being the most influential player in the global oil market, OPEC+’s ability to prevent a deficit in the market is being undermined by declining investments in oil and gas production. Furthermore, huge production cuts by OPEC+ like the ones implemented in 2020 are no more acceptable to its members.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London
  • DoRight Deikins on September 29 2021 said:
    If Texas was a foreign country, would the current US administration ask them to increase their production?

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News