The oil fell after the announcement of the results of the OPEC+ meeting

Yesterday, the results of the OPEC+ meeting became known, at which a unanimous decision was made to follow the plan and not increase oil production more than previously decided. A similar decision was also recommended by the ministers of the OPEC+ monitoring committee.

Thus, in December, production will be increased by 400 thousand barrels per day, as in previous months. The alliance expects to fully withdraw from production reduction commitments by the end of September 2022. 

It is worth noting that major oil producers, including the United States, India and China, asked OPEC+ to increase production by 800 thousand b/d, but the organization ignored these requests. Experts believe that such a situation could lead to an escalation of the conflict between OPEC+ and the United States.

Immediately after the announcement of the results of the meeting, oil prices showed a sharp decline. Brent quotes collapsed from $84 to $80.25 per barrel. WTI oil fell from $83.15 to $78.75 per barrel. On Friday, the oil market recovered somewhat. The current price of Brent is $81 per barrel, WTI is $79.45. 

Additional pressure on the rate of «black gold» was exerted by data from the US Department of Energy on crude oil reserves in the country. According to recent statistics, inventories increased by 3.29 million barrels over the week, which turned out to be higher than forecasts for growth of 2.2 million barrels.