Oil prices jump as OPEC+ sticks with 400,000 Bpd output hike

In the shortest meeting so far in its history, the Organisation of Oil Producing Countries (OPEC+) decided on yesterday to increase the collective production by 400,000 barrels per day (bpd) in March, keeping unchanged the plan to boost output and pushing Brent crude above $90 per barrel again with the per-usual modest production hike.

According to a report monitored on Oilprice.com, one of the most upto date information sources on the sector, the ministers of the OPEC+ alliance, who met via video conference, rubberstamped in just 16 minutes the monthly production hike of 400,000 bpd for March.

The news comes at a time when petroleum prices in Ghana have reached levels that have sparked calls for the government to step in to cushion consumers.

Much as the high prices will be good for government revenue from the sector, it will worsen the already high cost of living and inpact inflation which is also now in the double digits.

Some analysts, and possibly traders, had expected a higher production increase, considering the recent rally in oil prices to $90 that has surely frustrated major oil-consuming nations.

Earlier this week, Goldman Sachs had expressed the view that OPEC+ might decide to announce a larger production increase for March than the usual 400,000 bpd, considering the oil price rally to $90 and the potential for renewed discontent from major oil importers at these high price levels.

OPEC+, however, confirmed the 400,000-bpd increase in record time and didn’t even plan a press conference after the meeting, the news source said.

Brent Crude prices returned to $90 per barrel just after news of the modest production increase and the record-short meeting broke.