The U.S. State Department official on Monday called for more hike in oil production, including from the Opec bloc, in light of rising global demand.
Speaking on the sidelines of the CERAWeek energy conference in Houston, Texas, U.S. Undersecretary of State for Economic Affairs, Energy, and the Environment Jose Fernandez said he would like to see an increase in oil output as world economies recover, prompting more consumption, and therefore supply should meet demand.
Fernandez stated, “We would like to see more supply” of crude worldwide, including from Opec+ (the 13 members of the Organization of Petroleum Exporting Countries and 11 non-OPEC allied countries).
Opec+ decided to cut output by two million barrels per day in early October and has not adjusted its output level since.
West Texas Intermediate (WTI), the standard American grade, has dropped in value by roughly a third since the early days of Russia’s invasion of Ukraine a year ago.
Yet, even after accounting for inflation, it is still over 40% higher than the same time in 2019 and approximately 30% higher than in 2018.
In 2023, demand is expected to grow by 2.32 million barrels per day, according to Opec projections.
Brent crude futures rose by 25 cents, or 0.29%, to $86.43 a barrel in early Asia trading on Tuesday after settling 0.4% higher on Monday.
U.S. West Texas Intermediate crude was at $80.62 a barrel, up 16 cents, or 0.20%, following a 1% gain in the previous session.