Oil prices hit 10-month low as OPEC+ look to boost production

Oil prices fell to their lowest level since January 1, when oil prices plunged after Wall Street Journal reported that Saudi Arabia, along with other OPEC oil producers, were discussing an increase in production.

Brent crude oil futures for January fell $4.07 or 4.7% to $83.55 per barrel by 1518 GMT.

U.S. West Texas Intermediate crude futures for December were at $76.06 down 4.2%, or 5%, ahead of Monday’s contract expiry. At $76.29, the more active January contract was at $3.82 (or 4.8%) lower.

At the OPEC+ meeting, on December 4, The Wall Street Journal reported that a possible increase of up to 500,000 barrels/day (bpd), will be discussed.

This would partially reduce the 2m barrels-per-day cut that Opec and its allies agreed to in October. It has sent Brent crude to an eight-week low.

If the cartel lifts production, it might help to heal the rift with Biden and keep energy flowing.

On 4th December, Opec members will meet – just a day after the European Union announced it would place an embargo against Russian oil and the Group of Seven rich nations plans to impose a price limit on Russian crude oil sales.

The Organization of the Petroleum Exporting Countries, (OPEC), and its allies, collectively known as OPEC+ have recently reduced production targets. This month, Saudi Arabia’s energy minister was quoted as saying that the group would remain cautious.

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