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OPEC decision bounces back oil prices

5 November 2021
Rueben Hale

Both crude and brent oil bounced back in price today following the OPEC refusal to accelerate production increases.  

The bump comes after a weekly dip for the commodities, with crude dropping 4.65 per cent and brent faring slightly better with a 2.85 per cent fall.  

Like most energy commodities, both crude and brent have experienced a substantial rise in price this year-to-date with respective rises of 64.22 and 57.01 per cent.  

David Prentice, Managing Director of Brookside Energy, says that the company had witnessed the shift back to OPEC, plus a control of oil production away from the US and planned for it. He said it is boutique producers like Brookside which are well placed to benefit from higher oil and gas prices that we are now seeing.  

“Brookside as a Company was founded on and planned for the return of better oil and gas prices – and we are delighted to have been able to deliver the flush production from our Jewell well into this pricing environment,” he said.  

Brookside, a Perth-based energy exploration company, has recently brought its first operated well into production. It is working towards a second with long-term sights on over 20 wells in its SWISH area in Oklahoma, plans which Prentice affirmed plans had not been affected by the development. Prentice says the US is unlikely to regain its former stranglehold over global oil production in the immediate future.  

“OPEC+ has reasserted its control of global energy markets, following a period of strong US production growth driven by the “shale revolution,” he said. 

“We don’t see this changing given the current focus of US E&P co’s on capital discipline and the fact that on-shore acreage has been “high-graded” and that production growth is coming from exploitation or development drilling – something that is the cornerstone of Brookside’s business model.” 

With production returning to pre-COVID levels, no energy commodity has seen a price dip for the year to date.  

The price of methanol has risen the least with a 17.55pc gain, while both TTF and UK gas has boomed with yearly increases of 283.71 and 236.01 per cent, despite heavy monthly dips. 

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