LONDON (WBAP/KLIF News ) – Oil industry analysts are weighing in after the Organization of Oil Exporting Countries and its allies agreed on Wednesday to a minimal boost in production than in previous months.
OPEC + will increase output to 100,000 barrels a day next month after raising it by 648,000 barrels per day in July and August.
Triple A Texas’ Daniel Armbruster said some of the member countries are having trouble meeting the current quotas.
“Some countries have fallen short on their pledges. It could be due to under investment in their oil sector. It could be due to political reasons. But, nevertheless, we continue to see crude oil prices come down,” he said.
The move comes after President Joe Biden’s high profile trip to Saudi Arabia as part of an effort to get Riyadh to help boost global supplies.
However, OPEC has to coordinate with a coalition of Russia-led producers before making any decisions.
Despite the ongoing volatility, crude prices are dropping. They’re currently sitting at $95 a barrel and analysts in Texas stress that’s good news for drivers.
“Crude oil prices at least for the moment continue to go down which in theory would bring prices down further here in the United States. Today, in Dallas Fort Worth the average is $3.48 for a gallon of regular unleaded…a month ago it was $4.49,” said Armbruster.
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