Global benchmark Brent oil remained almost the same, near $72 a barrel, after OPEC+ entered into an agreement to boost crude production, betting that the market can absorb the extra supply.
- In a recent meeting, ministers from the Organization of Petroleum Exporting Countries and its allies agreed on a 400,000 barrel-a-day increase set for October.
- In the U.S., a government report revealed a further decline in nationwide crude investors as the nation’s oil infrastructure continued to struggle with Hurricane Ida’s impact.
- Crude has jumped nearly 40% this year as oil consumption rebounded from the impact of the coronavirus pandemic, even though the bulk of the gains came in the first half.
- OPEC+ has been slowly restoring additional of the supply it suspended last year when the global crisis emerged.
In a Bloomberg TV interview, Energy Aspects head of research Amrita Sen stated that prices should be higher heading into year-end. High natural gas prices could bolster demand for fuel oil in the winter.
CL1! up +0.61%, DXY down -0.08%Source: Bloomberg