On Monday, both US and UK crude oil futures’ prices had climbed to fresh multi-year peaks with Brent roaring past an $81 per barrel, as OPEC (Organization of Petroleum Exporting Countries) alongside their allies had decided to cling to on their current output policy to heighten up output by 0.4 million bpd (barrels per day) each month between September to December as demand outlook for petroleum products seemed to be bouncing back around the globe.
In point of fact, in the day’s havoc-scale gains in crude oil futures’ prices were almost entirely catalysed by an OPEC+ decision to keep ramping up oil outputs in a meet of the producers’ club that took place over the weekend, while several analysts were quoted saying that the latest OPEC+ move would ratchet up inflationary pressures higher while adding to further impetus on a multi-year high crude oil futures’ prices.
Over the meet of OPEC+ member states, the producers’ party had agreed to continue to flesh up outputs by 400,000 bpd (barrels per day) each month up to April 2022, largely aimed at covering up a 5.8 million bpd of existing output cuts.
Oil gains ground after OPEC+ meet
Citing statistics, in the day’s commodity market wind-down, UK crude futures’ prices jumped 3.0 per cent to $81.62 a barrel, a level never witnessed since 2018, while US WTI (West Texas Intermediate) crude oil futures’ prices soared 2.7 per cent to $77.96 a barrel, remarking the strongest level since 2014.
Meanwhile, addressing to a likely buoyant crude oil market over coming days, a partner at Again Capital LLC in New York, John Kilduff said, “Given the demand picture and the outcome of the OPEC meeting, the overall sentiment around crude is bullish”.