OPEC+ considers measures to reduce overheated oil prices

On October 4, the Organization of the Petroleum Exporting Countries and its partners (OPEC+) will hold an online meeting to decide whether to increase production in order to reduce the rising oil prices.

An oil facility in Jubail, Saudi Arabia. Photo: AFP/VNA

Helima Croft, an expert at Canadian investment bank RBC Capital Markets, said that OPEC + will come under increasing pressure from the US to increase production. She said that in the context of the energy crisis in Europe and China is escalating, it is likely that OPEC + will reconsider the decision to gradually increase output made earlier and push for a sharp increase in output.

Meanwhile, based on the current market situation, Goldman Sachs forecast that the price of Brent oil could soar to $90 per barrel in a few months. To cool down, OPEC + can choose to increase production, but the question is whether countries are willing to do this.

The oil market situation has changed little since the OPEC+ meeting earlier this month as demand continues to weigh on global crude supplies. Oil prices rose to more than $80 a barrel for the first time last month in nearly three years.

The rise in oil prices, on the one hand, benefits producers by increasing export volumes and revenues, on the other hand, causes constraints in the medium term as rising oil prices threaten to stifle a capital economic recovery. fragile after the COVID-19 pandemic.

Previously, during a meeting in early September, OPEC + agreed to gradually increase crude oil production according to the policy being applied. OPEC + at the July meeting agreed to increase crude oil production by 400,000 barrels per day and this level is expected to remain unchanged in the near future.

On August 31, OPEC + experts forecast that the growth of crude oil demand in 2022 would reach 4.2 million b/d, up from the previous forecast of 3.28 million b/d. This is said to be possible OPEC + will increase oil production in the future.