(OPEC) OPEC+ members have agreed to stick with a scheduled 400,000 barrel-a-day supply hike for November. The news pushed West Texas Intermediate crude up by about 2.4% to $77.68 a barrel.
The agreement by OPEC+ cooled market fears of a potential larger supply increase, boosting optimism in oil markets.
Analysts now say OPEC+ oil policy will be the primary determinant of prices in the coming months.
The analysts also see the possibility of external crises complicating OPEC+ policy. The shortage of natural gas is already spilling over in oil products leading to increased demand, while Hurricane Ida is impacting oil production in the US.
At $77.68 a barrel, the West Texas Intermediate crude is now at its highest level in almost seven years. OPEC+ is now scheduled to meet again on November 4, 2021.
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