On Friday, oil prices rose in Asian trading on the back of the gradual OPEC+ oil output increase.
In New York, futures climbed close to USD80/barrel after losing more than 6% in the past three sessions.
On Thursday, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) held a meeting where it agreed to raise oil production by 400,000 bpd in December, keeping its pace unchanged from the original plan.
Investors are now assessing the impact of OPEC+’s decision on the US, whether the White House would act further to calm the prices rally as its frequent calls for output hike up to double the agreed amount was not fulfilled.
A National Security Council spokesperson said that the White House is considering a range of tools to deal with prices as President Joe Biden’s administration had previously raised the possibility of tapping their own strategic reserves.
Analyst John Kilduff of Again Capital LLC commented, “OPEC+ holds all the cards and if the SPR supplies do not get tapped, much higher prices will ensue. With the peak demand season looming, we are in the crunch period.”
