Oil jumps to 3-week high as OPEC+ agrees to deepen cuts, US stockpiles fall

US and UK crude oil prices have glided over the wings of a soaring eagle, as OPEC+ member states had finally agreed to come into terms regarding their output cut decision

by Sourav D
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Oil jumps to 3-week high as OPEC+ agrees to deepen cuts, US stockpiles fall

On Wednesday, both US and UK crude oil prices have glided over the wings of a soaring eagle, as OPEC+ member states had finally agreed to come to terms over their output cut decision. In the latest flashpoint of a steep output-cut from the OPEC (Organization of Petroleum Exporting Countries) alongside Russia-backed allies, OPEC+ would slash output by 2 million bpd (barrels per day), remarking a nearly 2.0 per cent of entire global crude output contemplating an average September output of 101.3 million bpd.

Aside from that, crude oil prices received further support from US Government data that underscored the US crude stockpiles have been jolting at a breakneck pace amid a sharp rise in exports to EU nations, while energy experts were quoted saying that a $5-per-litre fuel prices in the US might just be over soon, as the country braces for one of its toughest winter ahead with stockpiles plunging to a record low.

Crude oil gains over 2 per cent as OPEC+ agree to output cut

Citing statistics, in the day’s commodity market wind-down, the UK crude contracts’ prices gained 2.2 per cent to $93.81 a barrel after spiking to an intra-session peak of $93.96 a barrel, the highest since September 15.

Aside from that, the US WTI (West Texas Intermediate) crude oil futures gained 2.1 per cent to $88.30 a barrel after reaching $88.42 per barrel earlier in the session, the strongest since September 15. Meanwhile, addressing to investors’ anticipation of a large-scale output-cut from the OPEC+ member states, a senior market analysts at City, Cincotta said, “The real impact of a large cut would be smaller, given that some of the members are failing to reach their output quotas. ”

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