OPEC+ Stands Pat With Oil Above $100: Why American Barrels Matter More Than Ever
Seven core OPEC+ producers have agreed in principle to keep December output targets unchanged when they meet online on Sunday, Reuters reported, citing three sources. With the Iran war still squeezing Gulf supply and crude up sharply in October, here is what the decision means for prices at the pump and for U.S. energy.
By Clara Hughes
Do not expect OPEC+ to come to the rescue at the gas pump this winter. Seven core members of the OPEC+ alliance, Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman, have agreed in principle to keep their December oil output targets steady at an online meeting on Sunday, November 1, three people with knowledge of the matter told Reuters on October 31. That fits expectations that the group will not make further policy changes until next year. The decision comes as oil sits at its highest levels in six months. On Friday, October 30, the expiring December Brent contract settled at $117.64 a barrel, and the more active January contract at $113.43, Reuters reported. U.S. benchmark West Texas Intermediate settled at $104.12. For October, Brent rose 13.6% and WTI 15.2%. For American drivers, it adds up to stubborn prices. AAA put the national average for regular gasoline at $4.18 a gallon on October 31. In its October 29 update, AAA said the average had been $4.46 a month earlier and $3.04 a year earlier, and