(Sharecast News) - The Organisation of Petroleum Exporting Countries and its non-member allies approved a further increase in their combined production and said that the recent oil price surge was not the result of market fundamentals but of "geopolitical developments".
At their ministerial meeting, energy ministers from the so-called OPEC+ grouping said that they would increase their production by 400,000 barrels a day as of April, as per previously announced plans.
"It was noted that current oil market fundamentals and the consensus on its outlook pointed to a well-balanced market, and that current volatility is not caused by changes in market fundamentals but by current geopolitical developments," they added.
They also said that the "consensus" as regarded the outlook for the oil market was that it would be "well-balanced".
But not everyone quite agreed.
Since late 2021, a few analysts had argued that OPEC* would struggle to ramp up its combined output as planed over the course of 2022 in part due to a lack of the necessary investments.
More recently however, the possibility had arisen that a deal with Iran on that country's nuclear activities might seen it make up for some of the projected shortfall in output.
As of 1630 GMT, front-dated Brent crude oil futures were advancing by 3.36% to $108.50 a barrel on ICE.