Oil Prices Jump to 3-Year High as OPEC+ Fails to Reach an Agreement on Production Policy

Oil prices nearly rose to three-year high on Monday after OPEC and its allies failed to reach an agreement on production output for August, and the meeting was postponed indefinitely.

 

The OPEC+ meeting that was supposed to end by reaching an agreement last Thursday was dragged into Monday, July 5, 2021, after the group proposed to add 400,000 barrels per day to the market each month from August through December, while some members also proposed to extend the policy through the end of 2022.

However, UAE disagreed with the group and wanted higher production output, saying that the policy was not a good deal for the country.

 

Last night, West Texas Intermediate (WTI) rose $1.17 or 1.56% to $76.33 per barrel, the highest level since October 2018. Meanwhile, the international benchmark Brent crude rose $0.93 or 1.2% to $77.10 per barrel.