Organization of Petroleum Exporting Council (OPEC) along with together with its allies OPEC+ on Thursday agreed to continue with current pace of supply despite several requests made by the U.S. to boost supply putting oil prices at ease.
The group announced to maintain 400,000 barrel-a-day output hike for December. This prompted speculation in the market, U.S. may tap its strategic reserves.
Earlier President Biden urged OPEC+ to accelerate output in order to stabilize market prices. White House spokeswoman Karine Jean-Pierre after the OPEC+ decision said, the Biden administration is considering a range of tools to deal with oil prices.
Russia’s Energy Minister Alexander Novak said the OPEC+ is committed to ensure to market stability and in case of sharp spike in demand the group has sufficient tools to deal with such accelerated demand.
According to Goldman Sachs, volatility in the oil market is expected to rise in the coming days with disagreement between U.S. and the OPEC+.
West Texas Intermediate (WTI) inched down to $79.00 dollar level, trading at $79.51 while Brent Crude is trading at $81.12 level.
The SET sub-Energy index inched down on open by 0.30% while the sub-PETRO index down by 0.158%.
Additionally, energy crisis is spreading to the diesel market where a hydrogen crisis is adding to the complication for oil refineries in Europe.
Note: Prices and index quotations are as of Thailand time 10.24 hours.