OPEC+ stalemate threatens the pandemic recovery

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The failure by major oil producers to agree on supply increases could elevate fuel prices, stoking inflation and weighing on the recovery from the coronavirus pandemic, the International Energy Agency has warned.

The Paris-based organization said in a report on Tuesday that the OPEC+ impasse, which is keeping production capped even as demand rises, could lead to a supply crunch.

Oil prices surged to multi-year highs last week after OPEC+ — which groups producers from the Organization of the Petroleum Exporting Countries with allies including Russia and Mexico — failed to come to an agreement on boosting production. "Infections are on the rise in several countries around the world and if restrictions need to be added or reinstated again, they could have an impact on economic growth, and consequently on oil consumption," Rystad Energy oil markets analyst Louise Dickson wrote in a research note on Monday.

Last year, tensions between Russia and Saudi Arabia over how to manage oil markets boiled over into a brutal price war that swamped markets with cheap oil and sent prices into a tailspin.

 

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OPEC can't do that under TRUMP... BIDEN is compromised...

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