Commodity News
HeadLine : Oil slips as OPEC+ weighs output boost for tight market
Date : Oct 1 2021
Oil prices dropped on Friday on the prospect that the OPEC+ supplier alliance might step up a planned increase in output to ease supply concerns, with soaring gas prices spurring power producers to switch from gas to oil. U.S. West Texas Intermediate (WTI) crude futures slipped 5 cents to $74.98 a barrel, though the contract remained on track to post its sixth consecutive week of gains. Brent crude futures fell 7 cents, or 0.1%, to $78.24 a barrel, but was still heading for a small rise on the week, marking a fourth straight week of gains. All eyes are now on a meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, together known as OPEC+, on Monday, where producers will discuss whether to go beyond their existing deal to boost production by 400,000 barrels per day (bpd) in November and December. Four OPEC+ sources said adding more oil was being looked at as a scenario, without giving details on volumes or dates, against a backdrop of oil hovering near a three-year high and pressure from consumers for more supply. With natural gas prices soaring globally, power producers have been turning to fuel oil or diesel instead of gas, yanking oil prices higher. Generators in Pakistan, Bangladesh and the Middle East have already started switching fuels.

Source: Reuters


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