London: Brent crude oil futures reached new three-year highs on Tuesday, nearing the US benchmark crude 2014 peak, after the OPEC + Manufacturers Group decided to push further instead of its planned release hike.
OPEC + approved in July 400,000 barrels per month (bpd) each month to stop production cuts of at least 5.8 million bpd per month until April 2022.
Brent crude was up $ 1.07 or 1.3% at $ 82.33 at 1128 GMT, up 2.5% on Monday. US West Texas Intermediate (WTI) oil was up 89 cents or 1.2% at $ 78.51 after gaining 2.3 percent in the previous session.
Oil prices have already risen more than 50% this year, raising concerns about inflationary pressures by crude-consuming countries such as the United States and India.
The OPEC + Joint Technical Group (JTC) expects the supply deficit to rise to 1.4 million bpd this year from 1.1 million bpd at the end of last month.
Despite pressure to increase output, OPEC + is concerned that the fourth global Covid-19 infection will recover demand, a source told Reuters shortly before the vote.
Russian Deputy Prime Minister Alexander Novak said after the talks that he believed the market was now in equilibrium.
The (price) move appears to be slightly larger as ministers reaffirm the decision announced in July, but it shows how tight the market is, reinforcing our view of asymmetric price action with the risk of reversing at these commodity levels, ”Barclays said in a statement.
Meanwhile, U.S. crude and distillery inventories are likely to fall last week, according to an initial Reuters poll.
Five analysts surveyed by Reuters estimated that crude inventory fell by about 300,000 barrels in the week to October 1st.
(This story was not edited by NDTV staff and was automatically created from Syndicate Feed.)