Oil Up, but OPEC+ Decision to Restrain Supply Caps Gains By Investing.com

© Reuters.

By Gina Lee

Investing.com – Oil was up Tuesday morning in Asia but climbed down from their highest levels in years hit during the previous session. Investors digested a decision from the Organization of the Petroleum Exporting Countries and allies (OPEC+) to uphold its current restraint on supply.

were up 0.41% to $81.59 by 10:57 PM ET (2:57 AM GMT), remaining above the $80 mark. were up 0.28% to $77.84.

OPEC+ said at its meeting on Monday that it would maintain an agreement for a gradual increase in oil production. The decision ignored calls from the U.S. and India to increase output as the economic recovery from COVID-19 continues, if slowly, and boosts the fuel demand outlook.

The decision “will allow us to continue to normalize the market situation,” Russian Deputy Prime Minister Alexander Novak said during a speech at the meeting. The cartel will next meet to discuss production policy on Nov. 4.

The black liquid has rallied more than 50% in 2021 to date, which has contributed to inflationary pressures that crude importer nations are concerned will detail the economic recovery.

However, the OPEC+ decision reflects “a lack of urgency within the group to ramp up output on the expected surplus in 2022 and limited capacity with key producers,” Barclays (LON:) analyst Amarpreet Singh said in a note.

The jump in crude prices overnight “looks a bit outsized given the ministers just reaffirmed the decision announced in July but it shows how tight the market is”, the note added.

Investors now await , due later in the day.

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