Oil Prices Continue Their Climb On OPEC Shock

Related stories

Tinubu Departs Saint Lucia, Heads to Brazil for BRICS Summit

By Abiola Olawale President Bola Ahmed Tinubu departed Saint Lucia...

2027: Drama, Intrigues as Julius Abure Tells Otti to Quit Labour Party

By Abiola Olawale In a dramatic turn of events, Barrister...

FG Secures $100m for Lagos-Calabar Project from ECOWAS Bank

By Abiola Olawale The Nigerian government has reportedly secured a...

Ex- Arsenal Star Thomas Partey Faces Rape, Sexual Assault Charges in UK

By Abiola Olawale The Metropolitan Police have formally charged former...

Edwin Cortes: Prefers Being A Small Puerto Rican Than Big American

By Owei Lakemfa To be a citizen of the United...

By Julianne Geiger 

Crude oil prices rose further into the afternoon on Monday, trading at $85 for Brent crude oil around 4:30 p.m. ET, on the back of Sunday’s OPEC+ move that shocked the market.

Most analysts had assumed OPEC+ would stay the course and keep production plans steady, but a surprise decision from the group on Sunday shocked traders. The move came as a surprise to most, although in the Fall of 2020, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman warned traders that whoever gambled on the market would be sorry.

“We will never leave this market unattended. I want the guys in the trading floors to be as jumpy as possible. I’m going to make sure whoever gambles on this market will be ouching like hell,” Abdulaziz said in Septemer 2020. At that time, Brent was falling below $40 per barrel.

While Brent crude oil was trading around $85 per barrel—a $5.10 barrel gain on the day (+6.38%) WTI was trading at $80.52 per barrel—up $4.85 per barrel (+6.41%). It is the highest price level in months for crude oil.

OPEC+ agreed on Sunday to cut production by another 1.16 million barrels per day, for a total cut of 3.66 million bpd. The White House said it was given advanced notice of the production cut plans, U.S. officials said on Monday. The Biden Administration said that it made its disagreement with the cut plans known when they were notified of the plans.

Most oil analysts have raised their price forecasts for crude oil for this year in light of the OPEC+ plans. Higher oil prices could lead to more rate hikes from the feds. Refining margins fell to the lowest level since February as crude prices rose. NB: Julianne Geiger wrote this article for Oilprice.com

The New Diplomat
The New Diplomathttps://newdiplomatng.com/
At The New Diplomat, we stand for ethical journalism, press freedom, accountable Republic, and gender equity. That is why at The New Diplomat, we are committed to speaking truth to power, fostering a robust community of responsible journalism, and using high-quality polls, data, and surveys to engage the public with compelling narratives about political, business, socio-economic, environmental, and situational dynamics in Nigeria, Africa, and globally.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

NDN
Latest News
Tinubu Departs Saint Lucia, Heads to Brazil for BRICS Summit2027: Drama, Intrigues as Julius Abure Tells Otti to Quit Labour PartyFG Secures $100m for Lagos-Calabar Project from ECOWAS BankEx- Arsenal Star Thomas Partey Faces Rape, Sexual Assault Charges in UKEdwin Cortes: Prefers Being A Small Puerto Rican Than Big AmericanJune 12 And The International Pursuit of Justice For Abiola, By Femi FalanaBreaking Down the West’s $146 Billion 2024 Defence Technology InvestmentG7 vs. the World: GDP, Population, and Military StrengthUS drillers cut oil and gas rigs for 10th week in a row, Baker Hughes saysExclusive! Tinubu Tips Late Ajimobi's Wife, Florence, Others for Ambassadorial PostsTinubu Mourns, Pays Tribute to Legendary Super Eagles Goalkeeper Peter RufaiNatasha vs Akpabio: Court Orders Senate President To Recall Senator NatashaHadi Sirika Denies Defection to ADC Coalition Rumors, Reaffirms Loyalty to Buhari, APCChina Snubs U.S. Crude for Third Month, Even as Ethane Trade RestartsHow Super Eagles Icon Peter Rufai passed Away at 61
X whatsapp