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US oil prices at six-year high after OPEC fails to reach deal

US oil prices jumped to six-year highs Tuesday after OPEC failed to reach a deal on oil manufacturing — elevating issues that output might fail to sustain with surging demand.

Futures for West Texas Intermediate, the primary US oil benchmark, superior 1.3 p.c, or about $1, to $76.16 per barrel. At one level, WTI crude reached $76.98, the best value since November 2014.

Brent crude, the worldwide power benchmark, traded roughly flat at about $77.04 per barrel, the best value since late 2018.

The surging prices got here after talks that started final week between OPEC and its oil-producing allies, often known as OPEC+, fell aside. The group’s meeting sought to set up manufacturing coverage for August and the rest of the year.

But a Saudi Arabia-backed plan to elevate output and let the worth stabilize failed to win settlement, with the United Arab Emirates, a key OPEC member, refusing to log out.

The common fuel value in America is over $3 per gallon.
Matt Rourk/AP

Discussions had been set to resume on Monday however bought known as off in an indication of simmering tensions and stalling talks.

Analysts, together with Warren Patterson, head of commodities technique at ING Groep, say {that a} manufacturing hike is critical as demand for oil continues to rise to pre-pandemic ranges. Without a brand new manufacturing plan, prices are seemingly to proceed to rise, at least within the brief time period.

Americans are already feeling the crunch at the pump, with nationwide common fuel prices over $3 per gallon at a seven-year high.

Companies concerned within the power trade noticed shares rise Tuesday morning in premarket buying and selling. Occidental Petroleum stock rose about 1.6 p.c within the premarket and shares of oil-field-services agency Schlumberger rose about 1.3 p.c.

The US has pushed OPEC to reach a deal that will see output rise and tame the worth.

“Administration officials have been engaged with relevant capitals to urge a compromise solution that will allow proposed production increases to move forward,” a White House spokesperson stated Monday.

The surge in oil prices got here after talks between OPEC and its oil-producing allies fell aside.
Richard Carson/Reuters

The Kremlin has additionally stated {that a} new output plan is critical, although Russian President Vladimir Putin has no speedy plans to make contact with high OPEC+ officers.

With Post wires