US, Japan and India increase pressure on OPEC to stop rising oil | Economy

The OPEC cartel is proving to have wider shoulders, but its shoulders weigh more than ever. The three major oil importers in the US, Japan and India have doubled the pressure in recent days. Organization of Petroleum Exporting Countries (OPEC) Increase the pumps. Purpose: To stop the price rise that is putting consumers in trouble and contribute along with gas prices. Central banks are raising inflation to the point where it is starting to get harder to digest.

“The idea of ​​Saudi Arabia [el líder de facto del grupo de exportadores], Russia and other large manufacturers are not going to pump much, so it is not right that people can come and go to work. ” Joe Biden, When G20 Summit Held last weekend in Rome. Shortly afterwards, his energy secretary, Jennifer Granholm, said: “The price of petrol depends on what’s happening in the world oil market. That market is controlled by a cartel: OPEC. So that poster has more to say. [que yo] About what is happening ”. He criticized the fact that while global demand for crude oil had already returned to pre-epidemic levels, distribution had not yet been done so.

Indian Oil and Natural Gas Minister Hardeep Singh Puri and Japanese Trade and Industry Minister Koichi Hakiuda have made similar comments in recent days. But China and the European Union, the world’s largest oil importers, are quiet.

The U.S. insistence that OPEC raise its production ceiling is, in essence, a response to the additional cost its drivers face each time they go to refuel: the cost is about 40% higher than it was at the beginning of the year. Like Spain and other European countries, on the other side of the Atlantic, petrol prices have been high for more than seven years, leading to a sharp rise in general inflation.

The poster stands firm

OPEC, which pumps nearly four out of every 10 barrels consumed in the world – five out of 10 – and Russia, the country that coordinates its results, added to the pressure on Thursday’s meeting. Moved an inch from the plan drawn in the summer. It will increase its pumping by 400,000 barrels a day – agreed in August, when crude was still trading at about $ 65, almost 20 less than the current level – but that number is far from importers’ claims. In a market where demand is greater than supply.

According to Eurasia Consultancy estimates, the idle capacity of cartel countries is four to five million barrels a day more than their current pumps, but Saudi Arabia is arguing that demand is still declining due to the epidemic and there is no time to put it off. More crude in the market.

Demand is increasing

The global economic recovery, the approach of winter and the recent rise in oil prices due to two new factors: Natural gas prices skyrocketing – its price has quadrupled so far this year – which has led to a shift in crude oil derivatives. Reactivation of potential sectors and commercial aircraft, which has led to an increase in kerosene consumption after the summer. Meanwhile, seasonal demand in the Northern Hemisphere will continue to increase in the coming weeks. “Crude consumption will remain relatively strong throughout the year and in the first quarter of 2022,” Eurasia Consulting technicians acknowledged in a recent note to customers.

In parallel, global oil supplies have declined in recent months due to exporters’ cartel self-imposed restrictions, as well as external factors such as damage caused by them. Hurricane Ida At several oil bases located in the Gulf of Mexico.

Compared to the forecasts of other investment banks such as Goldman Sachs, there is no denying that a barrel is oil. Brent (European scale) reaches $ 100 in the medium term, with a report released this week predicting that crude oil will average $ 85 before falling to $ 75 next year. And 50 to 70 dollars for the long term yes The COP26 meeting is taking place in Glasgow It does not shed light on new decarbonization obligations.