The oil market is volatile on Tuesday

On Tuesday, Brent quotes again reached the level of $84 per barrel. The main support for the market is provided by the decision of OPEC + to remain within the framework of the current plan to resume production. The alliance agreed to increase production by 400 thousand barrels per day in December, despite calls from the United States and other major producers to increase production by 800 thousand b/d.

The number of drilling rigs continues to grow in the USA: the current number is 450 units against 444 units a week earlier. Despite this increase, crude oil production in the United States is currently 12% lower than pre-crisis levels. This is due to pressure within the framework of the «green» agenda, which leads to a noticeable reduction in investment in the industry.

At the same time, analysts note that if the participants of the COP26 climate summit fail to achieve an aggressive transition to decarbonization, the world will need more oil to meet demand.

American WTI crude oil rose to $83 per barrel during the day, subsequently declining to $82.52. Goldman Sachs analysts believe that the US oil market looks more balanced compared to Brent due to increased production and seasonally weak demand.