On Monday, crude oil prices soared even higher on the back of the OPEC+ output decision.
Brent settled at USD81.26/barrel after jumping by 2.5% or USD1.98/barrel while US oil was closed at USD77.62/barrel after hiking 2.3% or USD1.74/barrel.
Last week, Brent jumped by 1.5% for a fourth weekly increase in a row and was back up to highs last seen in 2018 while US oil was seen at the highest level since 2014.
The soaring prices followed the announcement from the Organization of the Petroleum Exporting Countries and their allies (OPEC+) of its decision to stick to an existing pact for a gradual increase in oil output even when they have been seeing pressures from big consumer countries such as the US and India to raise production after oil prices surged more than 50% this year.
The alliance will go in line with its previously agreed deal under which 400,000 bpd of oil supply would be added in November. Until at least April 2022, OPEC+ will boost the amount of output agreed to phase out its 5.8 million bpd of existing production cuts.
Rystad Energy noted, "The outcome of the OPEC+ meeting was no surprise, but when prices are at above USD80/barrel Brent, this is a level that makes customers uncomfortable and producers happy but cautious.”
Going forward, some analysts predicted the uncertainty regarding the impacts of the variants of coronavirus on demand which could weigh on OPEC+ decision-making and disrupt the economy.
