Oil Prices Hit Their Highest in 3 Years
The rise in oil prices comes after the decision of OPEC+ to maintain a gradual increase in oil production.
On Tuesday, crude oil prices rose and reached their highest levels in at least 3 years, after the OPEC+ group of producers chose to stick to its planned output rise rather than increase the production even further.
Brent crude rose 23 cents, or 0.3%, reaching $81.49 a barrel, by 03:41 GMT, after rising 2.5% on Monday. West Texas Intermediate (WTI) crude also rose 12 cents, or 0.2%, reaching $77.74, after rising 2.3% in the previous session.
On Monday, the Organization of the Petroleum Exporting Countries, OPEC, and its allies including Russia, within the framework of the OPEC+ group, confirmed that they will maintain their agreement to increase oil production but only gradually.
Calls by India and the US to raise production ignored
Calls by the US and India to raise production as the global economy recovers from COVID-19 were ignored.
Capital Economics expected a gradual return of demand growth to normal and that a recovery in supply would begin to affect oil prices as of the fourth quarter of the current year.
The research consultancy added in a note that during the current year, the growth of demand has surpassed supply, contributing to prices reaching multi-year highs. Thus, it is expected that this dynamism will be reversed as OPEC+ increases production.