US Oil Prices Hit Seven-year High as OPEC+ Sticks with Output Increase

Some fear the decision could threaten to raise tensions between large energy consumers including U.S., Europe and China.

Hart Energy Staff
opec_shutterstock

OPEC+ has said it will stick to its plan of gradually increasing oil production by 400,000 barrels a day each month. (Source: Shutterstock.com)

U.S. oil prices rose to the highest level in seven years after OPEC+ said it would stick to an existing pact for a gradual increase in oil output. The Organization of the Petroleum Exporting Countries, Russia and their allies, known as OPEC+, snubbed calls from the White House and declined to accelerate plans to increase crude production, adding to inflationary pressures that consuming nations fear will derail an economic recovery from the pandemic.

OPEC+ has faced calls for from big consumers including U.S., Europe and India for extra supplies after oil prices surged more than 50% this year. Both Europe and Asia have been gripped by tight energy supplies that have pushed natural gas and coal prices to record highs, while oil prices have been rising steadily as the world economy has rebounded from the impact of the pandemic.

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