The extension of the “OPEC +” agreement raises oil to the highest level in 3 years 

The “OPEC +” alliance decided, on Monday, to maintain the previously agreed production plans, which stipulate an upward monthly increase of 400,000 barrels per day until the end of next November.

After the meeting that took place today to discuss developments in the global oil market, oil prices jumped by about 3%, bringing Brent crude close to $82 a barrel, its highest level in more than 3 years.

The alliance, which includes members of OPEC and countries from outside, said that the meeting decided to maintain the decision to adjust monthly production by 0.4 million barrels per day, during next November, adding that the next meeting will be on November 4th.

The alliance added in a statement that the decision was driven by market fundamentals and the consensus on its potential prospects.

The “OPEC +” decision to stabilize the production ceiling comes at a time when the markets are suffering from a shortage of supplies in light of the recovery from the repercussions of the Corona pandemic, and part of the production in the Gulf of Mexico was disrupted due to two hurricanes.

By 15:19 (GMT), that is, minutes after the “OPEC +” statement was issued, the Brent benchmark crude contracts, for December delivery, jumped $2.44, or 3.08%, to $81.71 a barrel, and West Texas Intermediate crude contracts also increased. American, November delivery, at $2.17, according to “Anatolia”.

Ahead of the meeting, Brent crude futures prices for December delivery fell 0.61%, or 49 cents, to $78.80 a barrel.

US West Texas Intermediate crude futures for November delivery also fell 0.65%, or 49 cents, to $75.39 a barrel.

Today, the coalition is discussing the possibility of increasing oil production by easing production restrictions by 400,000 barrels per day, so that the total reduction will settle within an agreement that began to be implemented in May 2020, at 4.6 million barrels per day.

And if a decision is taken today to maintain plans to ease production restrictions by 400,000 barrels per day, this will not meet the approval of the White House, which called, last August, to ease restrictions by more than the expected number.

Global derivatives prices have risen rapidly, since the beginning of this year, with the return of the recovery of oil demand and the resumption of the opening of economic facilities, after a closure in 2020, caused by the outbreak of the Corona virus.

The alliance aims to implement a gradual easing of production restrictions, to reach a reduction of zero barrels by September 2022.

And at the end of last week, Brent crude contracts rose above $ 80 a barrel, the highest level since October 2018, amid an increase in demand and stable global supply.