Oil prices buoyed by soaring gas rates ahead of OPEC+ meet

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The sharp rise in wholesale gas prices is spilling over into the oil market, with looming demand for electricity generation and heating likely to further spur the sector this winter.

The spike in demand and consumption could lead the OPEC+ alliance of oil exporters, which meets in Vienna on Monday, to scale up their production plans.

“We could see an additional oil demand boost of nearly one million barrels per day (bpd) for December 2021, half of which we deem quite likely to materialise from incremental oil-for-power generation in Asia,” said Bjornar Tonhaugen, an analyst Rystad Energy.

“The remaining half is more uncertain and hinges on a colder-than-normal start of winter in the Northern Hemisphere.—APP

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