Published on 6 Oct 2021 on Zacks via Yahoo Finance

Oil to Stage Prolonged Rally? ETFs to Buy

Oil analysts forecast a sustain rally as OPEC opposed calls to boost supply. OPEC and non-OPEC partners, a group collectively referred to as OPEC+, said they would adhere to their current agreement for a gradual increase in oil supply.

The group’s decision was widely expected, although some expected an urging from the United States and India to control soaring oil prices. U.S. President Joe Biden’s administration had previously called on OPEC and its allies to increase oil output so that rising gasoline prices do not contribute to soaring inflation in America. Meanwhile, India — a huge consumer of oil — imports about 80% of its total energy requirements. No wonder, both countries will seek a lower oil price.

Oil prices climbed to multi-year highs shortly after a group of some of the world’s most influential oil producers walked opposite the path of material supply boost. OPEC+ said it had “reconfirmed the production adjustment plan” in a statement published online shortly after relatively swift ministerial talks. This referred to its former decision to add 400,000 barrels per day to the market for the month of November.