Oil prices jumped above $80 last week for the first time in almost three years, handing the club, led by Saudi Arabia and Russia, both a boost and a dilemma. While higher prices benefit producers in the form of increased exports and revenues, there are medium-term drawbacks if rising prices stifle the fragile post-pandemic economic recovery. US President Joe Biden's administration urged such an approach in August when National Security Advisor Jake Sullivan said the cartel was not doing "enough" to boost oil production. In a study published last week, Morgan Stanley analysts noted the possibility of "demand destruction" if oil prices creep over $80 a barrel. Iraq's oil minister has told the country's state news agency the group is working toward keeping prices around $70.

Source: Manila Times October 04, 2021 14:25 UTC