Oil gained as investors turned their attention to a key OPEC+ meeting, with the group facing calls from consumers to pump more crude.
Futures in New York rose back above $81 a barrel, with the alliance expected to stick to its planned 400,000-barrel-a-day hike for December. The U.S. is urging OPEC+ to raise output by as much as 800,000 barrels a day, according to delegates and diplomats, but so far there’s little indication it’ll change course.
Oil recently rallied to the highest since 2014 as an economic rebound from the pandemic combined with a supply crunch across the energy industry to drive up demand for crude. U.S. President Joe Biden has led calls from major consumers for higher OPEC+ production, but Saudi Arabia and others in the alliance have pushed back, saying coronavirus outbreaks continue to threaten the market.
OPEC+ has been pursuing a gradual revival of output halted during the Covid crisis, targeting a ramp-up of 400,000 barrels a day each month, though some members have struggled to boost their supply. The producer group will meet later on Thursday, and if it sticks to its current plan, the consuming countries will likely respond — potentially by releasing crude from strategic stockpiles.
