Daily Times

Crude oil prices went more than one percent up on Thursday after Opec+ kept policy unchanged at its ministerial meeting, agreeing to bring 400,000 barrels per day back to markets this month.

At 1320 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $0.88 (+1.23 percent) to reach $72.47 a barrel. Similarly, the US West Texas Intermediate (WTI) reached $69.49 a barrel, up by $0.90 (+1.31 percent).

The price for Opec Basket was recorded at $71.48 a barrel with 1.03 percent increase, Arab Light was available at $72.21 a barrel with 0.69 percent decrease, while the price of Russian Sokol slipped to $71.15 after shedding 0.66 percent. Meanwhile, Opec+, the oil exporters alliance headed by Saudi Arabia and Russia, has begun to taper a historic production restriction pact and plans to bring two million bpd back to the markets by the end of the year. The group also did not succumb to pressure from the White House, which last month urged producers to bring more supply to the markets. In August, US National Security adviser Jake Sullivan called on Opec and its allies to increase supply to stimulate demand and provide a buffer to high domestic petrol prices. “While the effects of the Covid-19 pandemic continue to cast some uncertainty, market fundamentals have strengthened and OECD [Organisation for Economic Cooperation and Development] stocks continue to fall as the recovery accelerates,” Opec said in a statement after the meeting on Wednesday. The group also extended the timeline for countries that produced over their quota to make compensatory cuts until the end of December. The producers have been asked to submit their plans to make additional cuts by September 17. The Opec+ will convene its next ministerial meeting on October 4.