Oil prices could experience an “off the charts spike” as winter approaches and OPEC and its allies stick to their earlier pact on oil output, a strategist told CNBC.
OPEC+ — the Organization of the Petroleum Exporting Countries, with their allies including Russia — have been under pressure from top consumers, such as the United States and India, to add extra supplies after oil prices surged 50% this year.
However, the oil cartel agreed on Monday to stick to an existing pact to hike oil output by 400,000 barrels per day (bpd) in November, shrugging off calls to pump more oil.
John Driscoll, chief strategist at JTD Energy Services, said the decision by OPEC+ was a “very prudent course of action” until one considers the ongoing energy crises and possible supply disruptions. - CNBC