OPEC+ oil strategy risks derailing economic recovery from pandemic

OPEC+ oil strategy risks derailing economic recovery from pandemic

Berlin: The alliance of some of the world's biggest oil producers said on Monday it wouldn't boost oil production beyond the 400, 000 barrels per day (bpd) that it has been adding each month, shrugging off pressure from big consumers, such as the US and India, to rein in spiraling oil prices. The OPEC+ delegates pointed to the uncertainty around the still raging pandemic for their cautious approach. The decision by the OPEC+ — an alliance between the Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, and a handful of other oil producers, helmed by Russia — sent crude prices to multiyear highs, further stoking inflation concerns, which are already weighing on the post-pandemic global economic recovery. Benchmark crude contract Brent North Sea and West Texas Intermediate (WTI) futures, the US benchmark, have nearly doubled in the past year to $81. 26 (€70. 05) a barrel and $77. 62, respectively, as demand for the fuel soars amid a swift economic rebound from pandemic lows. Oil supply remains curtailed with major oil producers reluctant to unleash the millions of bpd of spare production capacity, and US shale producers struggle to attract investments to boost production. "The outcome of