Several OPEC Plus sources have state told Reuters that the group will likely stick to the planned increase in the target oil production level for next March when it meets next Wednesday, believing that demand is recovering despite the possibility of a decline caused by the pandemic and discussing the possibility of raising interest rates.
While two OPEC Plus sources told Reuters that the oil price, which has hit its highest level in seven years at $ 90 per barrel, may push the group to consider other options. The majority of the sources ruled out making a fresh decision in the online meeting on the second of February, Reuters reported.
According to Reuters, Moscow is afraid that the price increase may lead to the resumption of shale oil production in the US.
Brent crude increased during trade on Wednesday as rising tensions in Eastern Europe and the Middle East raised concerns about a shortage of supply, while speculators took gains ahead of the US Federal Reserve’s decision and news on US oil inventories. Last week, oil prices reached a seven-year high on fears of a supply shortage caused by tensions between Ukraine and Russia.
US President Joe Biden warned on Tuesday that if Russia attacked Ukraine, he would consider sanctioning Putin, as Western countries increased military preparations and devised plans to defend Europe from a potential oil supply crisis.
Concerns over the Middle East were heightened on Monday after Yemen’s Iran-aligned Houthi militia launched a missile strike on a US facility in the UAE. According to US and UAE sources, US Patriot missiles foiled the strike.
Brent oil futures were up 1.2 percent to $ 88.24 a barrel at 14:47 GMT, following a 2.2 percent increase the previous session.
After climbing 2.8 percent on Tuesday, US West Texas Intermediate oil futures jumped 1.06 percent to $ 86.51 a barrel.
On Wednesday, the Federal Reserve finished its two-day meeting by declaring that the key interest rate will remain steady at 0.25 percent.