As per the trusted sources, the OPEC+ has taken over the control of crude oil prices, as the production in the US is lagging pre-pandemic levels, as stated by the senior executive at Vitol Group, the world’s biggest independent oil trader.Vitol’s head of Asia, Mike Muller, stated in an online conference that the reduction in the US drilling and output gives space for rarely any competition to the efforts put by the producers in managing the markets.
Brent crude hit up to USD 70 per barrel in the previous week for the first time in the last two years. This high is due to the buyers demanding more oil as compared to the producers pumping the oil. As per the trusted reports, the US oil producers are employing only half of the rigs they used before the pandemic happened in the year 2019.
Whereas the OPEC+ is a group that is led by Saudi Arabia and Russia, is known to be easing the barrels supply to the market due to the rising demand.Muller stated that there is a misunderstanding in the market that the control is over the OPEC+. He further stated that it would take a long time for the US oil to come back to the levels of production as they were before the coronavirus pandemic.
There was an agreement in the previous week among the OPEC and partners to keep up with easing the restraints on the production in July, but it kept the markets guessing about what it will do for the rest of the years.