Crude Oil held its ground today after investors were informed that OPEC+ Meeting was placed on hold. The UAE hesitated to endorse addition of 2 million barrels per day back into the market. This would happen during the latter half of this year. U.S. WTI crude futures rose 5 cents to $75.28 a barrel at the time of this writing. This is an increase of 2.4%. This has been one of the best days for this company since 2018. Brent futures were inclined about 4 cents up to $75.88 per barrel, after rising 1.6% today.
Two benchmark contracts listed robust gains today as the scheme, backed by OPEC+, to add 400,000 barrels per day back into the market each month from August through to December of 2021. Oil prices calmed themselves after the reaction from the UAE.
“Failure to come to an agreement could mean that the group continues with current levels of production, which would mean that the market tightens even quicker,” an expert said in a note. If current curbs are prolonged, though, some OPEC+ producers could be less willing to produce on time quotas, this would lead to a surplus stockpile.
West Texas Intermediate looked to be poised to increase 1.6% for the week. In contrast, the U.S. crude market has been observed restricting itself. Stockpiles continue to bolster demand. U.S. shale oil production hasn’t been rising on par with this activity. MetaNews will keep you informed of the trends after the delayed OPEC+ meeting reconvenes later next week. Crude Oil held its ground today after investors were informed that OPEC+ Meeting was placed on hold while the UAE hesitated.