Oil prices tumbled on reports that OPEC+ was considering increasing production

According to the oil price network reported on November 21, crude oil prices hit a 10-month low on Monday morning
.

Saudi Arabia and other OPEC+ members are reportedly discussing a production
increase in January.

The group is reportedly considering increasing production
by as much as 500,000 barrels per day.

OPEC representatives said Monday that Saudi Arabia, OPEC's de facto leader, and other OPEC+ members are discussing increasing oil production
, according to the Wall Street Journal.

The entire group will meet Dec.
4 to lay out OPEC+ production plans for January 2023, and the group is reportedly considering adding 500,000 barrels
per day.
If the group agrees to an increase in production targets, the timing of the increase will be one day
before the EU imposes the embargo and the G7 oil price cap comes into effect.

For the United States, the group's increase in production will be a welcome development
.
Over the past few months, the U.
S.
government has lobbied OPEC members to increase production
.
Despite attempts by the United States to persuade OPEC to increase production, the OPEC+ October meeting ended
with a decision to cut its oil production target by 2 million b/d in November and December.

While a 500,000-barrel-per-day increase in January is far from offsetting a 2 million barrel-per-day cut, the actual cut is seen to be much larger — closer to 1 million barrels per day
.
While this new production increase is only half that number, the move could at least fix the relationship to some extent
.