- Oil prices reach peaks last seen in October 2018 ahead of the OPEC+ meeting this week
- OPEC+ is returning 2.1 million barrels per day to the market as part of its plan to wind back last year’s output restrictions
- Both Brent crude and US West Texas Intermediate crude gained 0.3 per cent to US$76.40 (A$100.74) and US$74.30 (A$97.97) a barrel, respectively
- It’s the fifth straight week of oil price gains as fuel demand gained traction with increased travel in the northern hemisphere
Oil prices reached peaks last seen in October 2018 this morning as the United States and Iran continued their discussion about reviving a nuclear deal, leading to a delay in Iranian oil exports ahead of the OPEC+ meeting this week.
Brent crude gained 0.3 per cent to US$76.40 (A$100.74) a barrel while US West Texas Intermediate crude also climbed 0.3 per cent to US$74.30 (A$97.97) a barrel.
It’s the fifth straight week of oil price gains as fuel demand gained traction with increased travel during the summer months in the northern hemisphere, bolstering the effects of recovering economies around the world.
Meanwhile, the Organisation of the Petroleum Exporting Countries, known as OPEC+, is returning 2.1 million barrels per day to the market from May through to July as part of its plan to wind back last year’s record restrictions on oil output. OPEC+ is due to meet on July 1 and could further ease supply constraints in line with rising oil prices.
“We expect the OPEC+ alliance will try to balance the market’s need for more supply against the fragile nature of the recovery in demand,” analysts at ANZ said, adding that a recovery in jet fuel demand was still hampered by the closure of international borders.
ANZ expects OPEC+ to increase output by about 500,000 barrels per day in August, which is then likely to support higher prices.
Also on the radar of investors are negotiations about the revival of Iran’s nuclear deal, which are expected to resume in the coming days. It comes after a monitoring agreement between Tehran and the UN nuclear watchdog lapsed last week.