Opec+ supply shortfall may push up oil price

A 3D printed oil pump jack is seen in front of the Opec logo. — Reuters

NEW YORK: Global oil prices could climb further because of the Opec+ coalition’s “chronic” struggle to revive production, unless the group’s Middle Eastern heavyweights pump extra to compensate, according to the International Energy Agency (IEA).

Crude has rallied to a seven-year high above US$90 (RM377) a barrel as demand bounces back from the pandemic while supplies around the world lag behind. Plagued by under-investment and disruptions, the 23-nation Opec+ alliance has been unable to fully restore the output it halted – a problem the IEA expects to worsen.