Oil hits 3-year high after OPEC+ abandons their meeting, meaning supply could tighten even further

Oil hits 3-year high after OPEC+ abandons their meeting, meaning supply could tighten even further

Oil prices jumped to their highest in three years on Tuesday after OPEC and its allies abandoned talks on Monday without setting a new date for the next meeting. Ministers had been set to resume talks on Monday after failing to reach a deal on raising oil production last week, with the United Arab Emirates rejecting a proposed eight-month extension to output curbs. Now that no deal to boost production has been reached, it could signal tighter supply and rising prices. rose 0.8% to $77.78 a barrel, trading around their highest since autumn 2018, while rose 2.3% to $76.92 a barrel. This year alone, crude oil has soared by almost 50%. The current "crisis" within OPEC, which has seen Saudi Arabia and the UAE fail to agree on whether to continue the production cuts agreement, is not entirely unexpected, according to analysts at Commerzbank. Some OPEC members, including Saudi Arabia, had been hoping to increase production over the coming months. But the UAE refused to agree and sought better terms that would change how its quota is calculated and allow it to produce more, Deutsche Bank strategist Jim Reid said in a note. Oil prices hit post-pandemic highs after reports