charts spike” as winter approaches and OPEC and its allies stick to their earlier pact on oil output, a strategist told CNBC.
OPEC+ — the Organization of the Petroleum Exporting Countries, with their allies including Russia — have been under pressure from top consumers, such as the United States and India, to add extra supplies after oil prices surged 50% this year.
However, the oil cartel agreed on Monday to stick to an existing pact to hike oil output by 400,000 barrels per day (bpd) in November, shrugging off calls to pump more oil.
What I think [is] more concerning to everyone out there … what happens during the winter? Are we going to have another Arctic freeze?
JTD ENERGY SERVICES
John Driscoll, chief strategist at JTD Energy Services, said the decision by OPEC+ was a “very prudent course of action” until one considers the ongoing energy crises and possible supply disruptions.
“What I think [is] more concerning to everyone out there … what happens during the winter? Are we going to have another Arctic freeze?” Driscoll told CNBC’s “Squawk Box Asia” on Tuesday.
He pointed to the shortage of fuel in the U.K. — with long queues of cars waiting to buy gas, as well as “fist fights.” In the U.K., people have been panic buying fuel, causing shortages, as well as straining the fuel supply chains.