OPEC+ plans to increase oil production by 500,000 barrels in December
The Wall Street Journal, on Monday, quoted delegates in the Organization of the Petroleum Exporting Countries (OPEC+) as saying that Saudi Arabia and other oil producers are considering increasing production.
According to the newspaper, the group is currently studying an increase of 500,000 barrels per day to be presented at the “OPEC+” meeting next December.
As a result of this news, oil prices declined, approaching their lowest levels since the beginning of this year. Brent crude fell by more than 4.5 percent to about $83.6 a barrel, and West Texas Intermediate crude fell by more than 4.7 percent to about $76.3 a barrel.
Oil is facing increasing pressure with increasing concerns about demand as a result of the increased spread of Coronavirus in China. This virus witnessed two deaths from the virus since last Saturday, for the first time in about 6 months.
The dollar’s rise also increases pressure on oil prices, which fell at the end of Friday’s trading for the second week in a row.
In a surprising move, the “OPEC +” group decided last October to reduce oil production by two million barrels per day, starting next November, to support prices, which witnessed in the third quarter the first quarterly loss in two years.
