Gary Ross, chief executive of Black Gold Investors, an oil trading firm, agreed. “The U.S. has to be quite happy with the agreement,” he said. “It shows that OPEC is going to increase supply to meet rising potential demand.”

Where prices go from here is a matter of intense debate. Some analysts say that even with more oil from OPEC Plus, markets are likely to remain tight in the coming months. Brent crude, the international benchmark, closed at a little over $73 a barrel on Friday. Goldman Sachs forecasts that it could reach $80 a barrel this summer, and other forecasters say that reaching the $100 mark in the coming years is a distinct possibility.

Other analysts say there is plenty of potential supply that could be unleashed to cap any price rises. “There is a huge amount of spare capacity in the OPEC Plus countries,” said Michael Lynch, a distinguished fellow at the Energy Policy Research Foundation in Washington. Mr….

Read more…

Share.

Comments are closed.