Oil prices rise after OPEC+ meeting

Oil prices of benchmark grades rose during trading on November 5 against the backdrop of the OPEC+ decision after declining on November 4, Report informs citing Interfax.

January futures for Brent oil on the London ICE Futures exchange by 8:56 a.m. (GMT+4) rose by $0.73 (0.91%) to $81.27 per barrel. Following trading on November 4, their price decreased by $1.45 (1.8%) and amounted to $80.54 per barrel.

December futures for WTI rose by $0.8 (1.02%) on November 5 morning on the New York Mercantile Exchange (NYMEX) to $79.61 per barrel. Following the previous session, their price decreased by $2.05 (2.5%) and amounted to $78.81 per barrel.

The OPEC+ ministers unanimously decided to follow the plan and not increase oil production more than planned. Consumer pleas for additional volumes remained unanswered. OPEC+ explains this by forecasts of a future decline in demand.

OPEC+ has been gradually increasing its oil production by 400,000 barrels per day every month since July in order to neutralize the restrictions of 9.7 million barrels per day taken at the height of the COVID-19 pandemic.

A possible increase in oil production was actively discussed by the OPEC+ participants, but the risks of a drop in oil demand, in particular seasonal one, as well as the risk of the spread of the Delta strain became factors “against” such actions.

Oil prices have recently hit seven-year highs, but started declining earlier this week amid data on rising US inventories. Over the week, Brent may lose about 4%, WTI - about 5%.