Oil prices could climb to $100 a barrel or even higher, after the Organization of Petroleum Exporting Countries and its allies failed to reach an agreement on production.
- Former United States Energy Secretary Dan Brouillette believes oil prices could “very easily” hit $100 a barrel and potentially even higher, after OPEC+ discussions failed to produce an agreement on oil output.
- Brouillette noted that it is “equally possible” for oil prices to collapse, as the lack of a deal on oil output could force countries to produce their own and bring down prices in the process.
- OPEC+ on Monday tried to resume talks on the output, but failed and suspended discussions indefinitely. The group failed to reach an agreement twice last week.
- OPEC+ earlier planned to increase supply by 400,000 barrels a day from August to December this year, and sought a longer period of cuts until the end of 2022, but the United Arab Emirates was not keen on the terms.
Prices surged to the highest in three weeks on Monday and were trading even higher on Tuesday with US crude at $76 a barrel and Brent at $77.
WTI is up 0.86%, while Brent is down 0.36%.