Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Industries Energy

Oil prices spike as OPEC+ sticks to original pact

Ajibola AkamobyAjibola Akamo
1 year ago
in Energy, Spotlight
OPEC+ increased crude production by 140,000 b/d in December 2022 – Survey
Share on FacebookShare on TwitterShare on Linkedin

The Organization of Petroleum Exporting Countries and its allies (OPEC+) stated after their meeting today that the group will stick to its existing pact for a gradual increase in oil output. The market has taken this news positively as crude prices hit multi-year highs.

The OPEC+ has faced calls for additional supplies from big consumers, such as the United States and India, after oil prices have surged over 50% this year. This is because the oil price rally has in turn caused an increase in gas prices, which have spiked 300% and have come to trade close to an equivalent of $200 per barrel due to supply shortages and low production of other fuels.

The OPEC+, after its online ministerial talks, “reconfirmed the production adjustment plan” that it previously agreed to. The group had agreed in July to boost output by 400,000 bpd a month until at least April 2022 to phase out 5.8 million bpd of existing production cuts, already much reduced from curbs that were in place during the worst of the pandemic.

The effect of the OPEC+ meeting on Oil prices

After the news broke, Brent crude quickly roared above $81 a barrel. The global benchmark is currently up 3.05%, currently trading at $81.77 a barrel while the U.S benchmark, the West Texas Intermediate (WTI) is up 2.65%, currently trading at $77.88 a barrel as of the time of this writing. Both pairs are trading at multi-year highs.

Russian Deputy Prime Minister Alexander Novak stated, “We will be monitoring the situation, as we know, demand usually falls in the fourth quarter, our plans on increasing (output) are even, we will be watching how the market will be balanced.”

Bottomline

The price of oil is expected to continue its steady rise as the demand for oil is on the rise and supply hasn’t been consistent over the past few weeks. The supply disruption is a result of a number of factors which include the bullish outlook from top banking giants like Goldman Sachs and Trafigura Group, vaccination efforts and easing of lockdown measures, top African oil exporters Nigeria and Angola struggling to boost output to their quotas set by the OPEC+ and hurricanes Ida and Nicholas, which swept through the U.S Gulf of Mexico in August and September, damaging platforms, pipelines and processing hubs and ultimately shutting down most offshore production for weeks.

Related

Tags: OPEC

Leave a Reply Cancel reply

HFM
Mega Millions
Mega Millions
Standard
Patricia





NM newsletters

Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

Recent News

  • SWOOTs market capitalisation loses N67 billion after depreciating by 0.34%
  • 11 things to expect from the Crypto market in 2023
  • FUGAZ investors gain N24.3 billion during the week

Follow us on social media:

Recent News

The stock market closes negative with Market Capitalization down N18 billion

SWOOTs market capitalisation loses N67 billion after depreciating by 0.34%

January 29, 2023
Why it's a bad idea to bet against the Crypto market right now

11 things to expect from the Crypto market in 2023

January 29, 2023
  • Home
  • Exclusives
  • Markets
  • Industries
  • Economy
  • Business News
  • Financial Literacy
  • Lifestyle
  • Opinions

© 2023 Nairametrics

No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds

© 2023 Nairametrics