FX.co ★ OPEC to stick to its planned output for November

Although demand and oil prices have increased, OPEC is likely to keep its planned output for November. This means that at their next meeting, the coalition will not ramp up production beyond 400,000 barrels per day.

The Joint Technical Committee (JTC) met on Wednesday and discussed that the oil market will most likely hit a surplus of 1.4 million b / d in the baseline next year, slightly below the previous forecast of 1.6 million b / d.

OPEC Secretary General Mohammed Barkindo said the current treaty is helping to maintain a balance in the oil market.

But this year, it is inevitable that the market will face a deficit of 1.1 million b / d, assuming an increase in demand of about 6 million b / d. Then, next year, demand will increase by 4.2 million b / d.

OPEC ministers will meet online on Monday to review these JTC findings before making a final decision.

Meanwhile, the White House, which raised concerns about high prices in August, said it is in contact with OPEC and is studying how to lower oil prices.

India, which is the world's third largest oil importer and consumer, said the jump in oil prices will accelerate the transition to alternative energy sources.

Going back, energy ministers of Iraq, Nigeria and the United Arab Emirates said that in recent weeks the group does not see the need to take emergency measures to change the existing agreement.

But Nigeria and Angola will struggle to meet their OPEC quotas until next year due to insufficient investment and maintenance problems.

This means that for any significant increase in production, the group will have to rely on producers with spare capacity, such as Saudi Arabia and the United Arab Emirates.