Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Oil hits multi-year highs as OPEC+ sticks to output plan

Commodities Oct 05, 2021 03:00PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: An oil storage tank and crude oil pipeline equipment is seen during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, U.S. June 9, 2016. REUTERS/Richard Carson/File Photo
 
LCO
+0.03%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
-0.10%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NG
+0.10%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Nia Williams

(Reuters) -Oil prices jumped on Tuesday, with U.S. crude hitting its highest since 2014 and Brent futures climbing to a three-year high, after the OPEC+ group of producers stuck to its planned output increase rather than raising it further.

On Monday, OPEC+ agreed to adhere to its July pact to boost output by 400,000 barrels per day (bpd) each month until at least April 2022, phasing out 5.8 million bpd of existing production cuts.

U.S. West Texas Intermediate (WTI) oil closed up $1.31, or 1.7%, at $78.93 a barrel. During the session it surged more than 2% to as high as $79.48, the most in nearly seven years. Brent crude settled up $1.30, or 1.6%, at $82.56. Earlier, Brent hit a three-year high of $83.13.

Both contracts extended gains made on Monday, when they each rose more than 2%.

"The market is realizing we are going to be undersupplied for the next couple of months and OPEC seems to be happy with that situation," said Phil Flynn, an analyst at Price Futures Group in Chicago.

Oil prices have already surged more than 50% this year, adding to inflationary pressures that crude-consuming nations such as the United States and India are concerned will derail recovery from the COVID-19 pandemic.

Late last month, the OPEC+ Joint Technical Committee (JTC) said it expected a 1.1 million bpd supply deficit this year, which could turn into a 1.4 million bpd surplus next year.

Despite pressure to ramp up output, OPEC+ was concerned that a fourth global wave of COVID-19 infections could hit the demand recovery, a source told Reuters a little before Monday's talks.

Rocketing global natural gas prices, which may incentivize some power generators to switch from gas to oil, mean crude prices are likely to remain supported even though there could be a short-term pullback, said Gary Cunningham, director of market research at Tradition Energy.

"I think there will be some profit-taking ... but we are going into winter with very high natural gas prices," Cunningham said, adding that he expects Brent will find support around $80 and WTI in the mid-$70s.

Investors will look to Wednesday's crude inventory data from the U.S. Energy Information Administration for further direction.

U.S. crude oil and distillate inventories are likely to have fallen last week, a preliminary Reuters poll showed. [EIA/S]

Oil hits multi-year highs as OPEC+ sticks to output plan
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (8)
Iyarin Boonnum
Iyarin Boonnum Oct 05, 2021 12:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
More inflation soon 🤣🤣🤣Bye bye USA economy.
Small Trader
Small Trader Oct 05, 2021 10:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
just a small taste of what's to come courtesy of Joe Biden and the anti-oil left
kaka Bun
kaka Bun Oct 05, 2021 8:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bandar stop play! Sell strong
Horyu Ken
Horyu Ken Oct 04, 2021 11:55PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yeah Shahid, u got that right....something fishy, some agenda might be going inside Opec and its allies. topic should be more about oil players.......not prices
Val Lange
Val Lange Oct 04, 2021 11:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
We might touch $120 - 140 by the end of yhe year.
Shahid Ahmed
Shahid Ahmed Oct 04, 2021 10:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Reports are nothing but a trap to lure in innocent investors as per wishes of big guns.
Chris Maz
ChristoM Oct 04, 2021 10:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Constant traps ... to bankrupt retail and the average investor.
Meru Pet
Meru Pet Oct 04, 2021 10:03PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
not sure ...
Devrim Demir
Devrim Demir Oct 04, 2021 9:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Spam news haha
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email