With demand growing as economies recover from pandemic lows, the Organization of the Petroleum Exporting Countries (OPEC) and allied producers, collectively known as OPEC +, are maintaining their plans to restore production gradually rather than raising supply rapidly. . Jeffrey Halley, an analyst at brokerage OANDA, said the lack of a significant price change on Tuesday could be because “the market appears overbought based on short-term technical indicators.”
“I wouldn’t be the least bit surprised if we saw a strong sell-off from $ 5 to $ 8 a barrel sometime this week,” he said.
The price of Brent increased more than 60% this year. In addition to OPEC + supply moderation, the rally was driven by record gas prices in Europe, which encouraged a switch to oil for power generation.
Energy prices have soared to record highs in recent weeks, fueled by widespread power shortages in Asia, Europe and the United States. The energy crisis affecting China is expected to last until the end of the year.
With rising prices, OPEC + has come under pressure from consuming nations. A US official said Monday that the White House is upholding its calls for oil-producing countries to “do more.”
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