Top oil producers to meet amid record crude prices

Top oil producers to meet amid record crude prices

LONDON: The world’s top oil-producing countries will meet tomorrow to discuss a further increase in output, while crude prices have reached seven-year highs rattled by geopolitical tensions. Part of their regular meetings since the COVID-19 pandemic shook markets, the 13 members of the Organization of the Petroleum Exporting Countries (OPEC) and their 10 allies convene by videoconference to set output. Many analysts expect the grouping, including Saudi Arabia and Russia, to decide to continue to boost output by 400,000 barrels per day in March.

This will be in line with their strategy to slowly re-open the taps since May last year, after drastic cuts to curb slumping prices when the coronavirus first started spreading. “With that said, we wouldn’t completely rule out a larger increase, given high oil prices and recent OPEC+ underproduction,” Capital Economics analysts said. Brent oil on Wednesday surpassed $90 per barrel, attaining a level last seen in October 2014. The price of West Texas Intermediate (WTI) crude hit its highest level in more than seven years earlier this month, fuelled by easing concerns about the Omicron COVID variant and geopolitical tensions.

Russia sanctions?

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