Oil prices could potentially touch $100 a barrel as OPEC+ seek to stabilize the global market.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, known collectively as OPEC+, discussed the future of oil output last week and decided to resist calls to raise output faster and stick to their strategy to raise it by 400,000 barrels per day (bpd) in November.
Russian President Vladimir Putin said on Wednesday, that oil prices could surge up to $100 a barrel. He added that Moscow and its partners in the OPEC+ producer group are seeking to stabilize the global market.
Crude prices touched three-year highs, aggravating inflationary pressures in global markets.
Putin said, “This ($100 a barrel) is quite possible, it (the oil price) is now growing. We and our partners at OPEC+ are doing our utmost to stabilize the market.”
OPEC has pared its world oil demand growth forecast for 2021 and revised it to increase by 5.82 million BPD. It said that the downward revision was mainly due to data for the first three quarters of the year.
Sources close to OPEC+ said that the group decided to stick to its original plan mainly due to concerns that demand and prices could weaken.
Putin said, “We are not allowing sharp price fluctuations; this is not in our interests. We are not trying to curb production for the prices to skyrocket … We are standing for smooth and balanced movements (in oil output).”
Brent crude eased to $82.50 a barrel on Wednesday, as a result of demand concerns.
Iraqi Oil Minister Ihsan Abdul Jabbar said, “We think the price won’t be higher”.
Russian Deputy Prime Minister Alexander Novak, Moscow’s top negotiator at OPEC+ said that despite pressure from big producers like US and India calling for a faster increase, the group plans to stick to its previous strategy.
Novak said, “We are acting under an agreed schedule. Consolidated agreement was to add 400,000 bpd.”