OPEC+ Meeting To Discuss Oil Production Policy As Price Breaks Above $80 Per Barrel

After the price of Brent Crude Oil climbed above $80 a barrel last week for the first time since 2018, OPEC+ is set to meet on Monday to discuss oil production policy.

What Happened: The 23-nation grouping led by Saudi Arabia and Russia agreed in July to boost output by 400,000 barrels per day every month until at least April 2022. Four OPEC+ sources told Reuters last week, producers were considering adding more than that initial agreement.

Internal forecasts show global oil demand growth of only 700,000 barrels per day between September and December.

Demand would continue to outpace supply by 1.2 million barrels per day in October, and 900,000 barrels per day in November, before the market then flips into a 100,000 barrels per day surplus in December, if the OPEC+ alliance maintains its monthly output increases, according to an OPEC secretariat document being reviewed by the group’s Joint Technical Committee.

Why It Matters: Rising oil prices are amplifying inflationary pressures around the world and raising concerns that high oil prices could slow the recovery.

White House press secretary Jennifer Psaki last week said the U.S. has been in touch with OPEC and that the rising price of oil “is of concern for the U.S."

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