Demand for oil will be satisfied if suppliers provide as much as 1 million additional barrels per day, according to a pivotal yet unnamed oil official.
Less than one week before the 12-member nations of the Organization of Petroleum Exporting Countries are set to meet, they all agree more oil has got to be produced, Bloomberg reports. The official, who declined to be identified because he lacks authorization to publicly disclose an opinion, is a Middle Eastern OPEC delegate.
"It is the easy option not to change quotas at this meeting, but to avoid doing so sends a strong message that spare capacity is low or that there is a desire for higher prices," Lawrence Eagles, New York-based head of commodities research at JPMorgan Chase, told the news service. "On balance, lifting targets is politically the better option. However, higher targets and higher output do not necessarily go together."
At 3:04 p.m. on Thursday, crude oil futures were up 0.96 percent, a $1.10 rise to $115.63 per barrel.
Stockpiles of crude oil futures were expected to drop, according to a Dow Jones Newswire survey of analysts.
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