Oil Shoots Past $75 As OPEC+ Reaches Agreement

Oil prices surged beyond $75 on Thursday as the Organisation of
Petroleum Exporting Countries and its allies reached a tentative
agreement to add limited supplies to the market in the coming
months.

The International crude oil benchmark, Brent Crude, traded at
$75.74 per barrel after gaining $1.12 while the U.S West Texas
Intermediate rose by $1.14 to trade at $74.97 as of 5:39 pm
Nigerian time on Thursday.

Bloomberg reported that oil futures in New York rose by 3.7 per
cent to its highest same day level in three years as negotiations
between OPEC+ and the leaders, Saudi Arabia and Russia, were
ongoing.

The proposal under discussion would add about two million
barrels per day to the cartel’s output between August and December,
delegates told Bloomberg and Reuters.

Senior energy trader at CIBC Private Wealth, Rebecca Babin, was
quoted as saying, “OPEC is looking like it is going to keep some
restraint, and to me, the market is in a fantastic place. People
are very comfortable and constructive with the profile over the
next year.

“It is a pretty huge move, to be honest with you, and it
indicates that over the next several months, there is probably
going to be difficulty in getting enough crude oil for the summer
driving season in the U.S,” Babin remarked.

Oilprice.com quoted sources at OPEC+ saying that any agreement
to further unwind the curbs would hinge on the ongoing talks about
Iran and the United States returning to the Iran nuclear deal.

The publisher wrote, “The OPEC+ group is also debating the
extension of the current agreement beyond its end-date of April
2022. Delegates are considering potentially extending the deal
until the end of 2022.

“The OPEC+ alliance keeps around 5.7 million barrels per day off
the market. It will have returned by end of July two million
barrels per day of supply recorded from May, as per the agreement
earlier this year.

“Currently, another two million barrels per day gradual
increase, if confirmed, signals confidence in demand recovery but
also a more tentative approach than analyst expectations of at
least 500,000 barrels per day production hike for August
alone.”

Oil prices surged beyond $75 on Thursday as the Organisation of
Petroleum Exporting Countries and its allies reached a tentative
agreement to add limited supplies to the market in the coming
months.

The International crude oil benchmark, Brent Crude, traded at
$75.74 per barrel after gaining $1.12 while the U.S West Texas
Intermediate rose by $1.14 to trade at $74.97 as of 5:39 pm
Nigerian time on Thursday.

Bloomberg reported that oil futures in New York rose by 3.7 per
cent to its highest same day level in three years as negotiations
between OPEC+ and the leaders, Saudi Arabia and Russia, were
ongoing.

The proposal under discussion would add about two million
barrels per day to the cartel’s output between August and December,
delegates told Bloomberg and Reuters.

Senior energy trader at CIBC Private Wealth, Rebecca Babin, was
quoted as saying, “OPEC is looking like it is going to keep some
restraint, and to me, the market is in a fantastic place. People
are very comfortable and constructive with the profile over the
next year.

“It is a pretty huge move, to be honest with you, and it
indicates that over the next several months, there is probably
going to be difficulty in getting enough crude oil for the summer
driving season in the U.S,” Babin remarked.

Oilprice.com quoted sources at OPEC+ saying that any agreement
to further unwind the curbs would hinge on the ongoing talks about
Iran and the United States returning to the Iran nuclear deal.

The publisher wrote, “The OPEC+ group is also debating the
extension of the current agreement beyond its end-date of April
2022. Delegates are considering potentially extending the deal
until the end of 2022.

“The OPEC+ alliance keeps around 5.7 million barrels per day off
the market. It will have returned by end of July two million
barrels per day of supply recorded from May, as per the agreement
earlier this year.

“Currently, another two million barrels per day gradual
increase, if confirmed, signals confidence in demand recovery but
also a more tentative approach than analyst expectations of at
least 500,000 barrels per day production hike for August
alone.”