FRANKFURT, Germany (AP) — Members of the OPEC oil producing cartel and allied countries led by Russia signed off Wednesday on gradually increasing production as the global economy and demand for fuel continue to recover from the worst of the coronavirus pandemic.
The group, known as OPEC+, agreed at an online meeting to stick with earlier plans to add back 400,000 barrels per day from Oct. 1. The cartel and its allies are gingerly restoring deep cuts made last year, when lockdowns and travel restrictions caused demand for fuel and prices to crater.
Oil prices were trading lower ahead of the meeting. The price of oil fell 1.6% to $67.40 per barrel on the New York Mercantile Exchange, while Brent crude, an international benchmark, fell 1.4% to $70.67 per barrel. Prices have recovered from a slump to just above $62 for New York Mercantile Exchange crude on Aug. 20.
The decision tracks with a plan forged in July to add back 400,000 barrels a day each month until last year’s cuts are restored next year. The group has started meeting monthly to keep close watch on the market and production levels amid uncertainty about whether the more contagious delta variant of the coronavirus will present further economic setbacks in different parts of the world.
Led by its de facto leader, Saudi Arabia, OPEC+ has taken a step-by-step approach. Adding too much oil to the market could cause prices to slip, as they briefly did in August, while holding back production costs members money for their state budgets.
The Biden administration has urged OPEC to increase production faster, saying that higher gasoline costs risk harming the ongoing global recovery.
The average U.S. price for a gallon of gas at the pump was $3.17 on Wednesday, according to motoring association AAA. That compares to $2.32 per gallon a year ago. The cost of crude oil accounts for about half the price of gasoline at the pump.
Analysts said gas prices might rise after refineries in the United States shut down during Hurricane Ida, but they so far have remained relatively steady.
7 Tech Stocks That Are Heating Up as Anti-Trust Talk Cools Down
For the better part of the last year, Congress has had “big tech” in its crosshairs. But the reasons why largely depend on what side of the aisle a particular individual was on.
On the one hand, there are politicians who are concerned about the role that technology companies play in restricting the free flow of information. On the other hand, there are politicians that are concerned about these companies’ stranglehold on competitors and innovation.
But big tech scored an important, albeit not final, victory in late June. At that time, a U.S. judge dismissed two separate complaints against Facebook (NASDAQ:FB). The question in front of the judge was whether Facebook held a monopoly on social media. Due to a surge in the company’s stock price after the ruling, Facebook became a member of the exclusive $1 trillion market cap club.
While big tech companies will remain under the Congressional microscope, there’s no denying that investors are looking at the ruling as a signal to rotate back into tech stocks. And that’s the focus of this presentation. What tech stocks should you be buying as anti-trust pressure eases?
It would be easy to start and end the list with the FAANG stocks. After all, the motto “Keep it Simple Stupid” comes to mind. There are simply those companies that offer products that are changing our lives now and will continue to do so in the future. And furthermore, customers will continue to pay for their products.
And I do have a couple of these stocks on my list. But the bulk of the stocks on this list are less expensive alternatives to at least one of the FAANG stocks. It doesn’t mean they’re superior companies, but a rising tide tends to lift all boats. And that means these companies have a large upside and you can purchase the stocks for a lot less.
View the “7 Tech Stocks That Are Heating Up as Anti-Trust Talk Cools Down”.