OPEC steadily adds back production as economy recovers – KIRO 7 News Seattle

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FRANKFURT, Germany – (AP) – The cartel of OPEC oil producers and Russia-led non-member countries signed a gradual increase in production on Wednesday as the global economy and fuel demand continue to recover from the worst of the coronavirus pandemic.

The group fought off pressure from the US to accelerate the recovery of production cuts made during the pandemic and potentially cut fuel costs for American drivers.

The group, known as OPEC +, agreed at an online meeting to stick to previous plans to resume 400,000 barrels a day from October 1. The cartel and its allies are carefully restoring deep cuts made last year when lockdowns and travel restrictions created demand for fuel and prices to the crater.

Prices fell before the meeting but reduced losses afterwards. Oil fell 0.4% to $ 68.26 a barrel on the New York Mercantile Exchange, while Brent crude, an international benchmark, was down 0.4% to $ 71.36 a barrel. New York Mercantile Exchange crude oil prices on Aug. 20 have recovered from plummeting to just over $ 62.

The OPEC + decision follows a plan forged in July to add 400,000 barrels a day each month until last year’s cuts are restored next year. The important OPEC member Saudi Arabia has urged a cautious, step-by-step approach. The group has started meeting monthly to closely monitor market and production levels amid uncertainty over whether the more contagious delta variant of the coronavirus will cause further economic setbacks in different parts of the world.

If too much oil is added to the market, prices could fall, as was briefly the case in August, while reluctance to produce costs members money for their national budgets.

The Biden government has urged OPEC to ramp up production faster as higher gasoline costs could jeopardize the ongoing global recovery.

The average US price for a gallon of gasoline at the pump was $ 3.17 on Wednesday, according to the AAA. Compared to $ 2.32 a gallon a year ago. The cost of crude oil is about half the price of gasoline at the pump.

Analysts said gas prices could rise after refineries in the United States closed during Hurricane Ida, but they have remained relatively stable so far.