Oil prices rise; OPEC+ to raise output

Oil prices increased on Tuesday after plunging more than 8% in the prior session as OPEC+ agreed to raise output and as the Delta variant of COVID-19 clouded the outlook on fuel demand recovery.

After an initial setback and opposition from the UAE, on Sunday OPEC+ decided to increase overall crude production by 400,000 barrels per day on a monthly basis starting August 2021 until phasing out the 5.8 million bpd production adjustment.

The cartel also agreed on new production allocations for several members from May 2022, including the UAE, Saudi Arabia, Russia, Kuwait and Iraq. At around 04:00 AM GMT, WTI crude was up 0.2% to $66.57 a barrel, while Brent oil added 0.1% to 68.66 a barrel.

The West Texas Intermediate (WTI) benchmark for US crude is the world’s most actively traded commodity.

Source: Trading Economics