Brut in the long term added up to 2.7 pc to trade at the highest since 2018.
OPEC + de facto leaders Saudi Arabia and Russia have reached an agreement in principle to gradually increase production, but are still negotiating a deal, delegates said as ministers met online today .
The proposal under discussion would add around 2 million barrels per day to the cartel’s output between August and December, they said.
The OPEC + meeting is taking place against a backdrop of tight supply, with US crude inventories declining at the fastest rate in decades.
“We absolutely believe that prices are going to continue to rise, especially if OPEC adds anything up to 500,000 barrels per day,” said Amrita Sen, chief oil analyst at consultant Energy Aspects, in an interview with Bloomberg Television.
“It’s a drop in the ocean. “
Warren Patterson, head of commodities strategy at ING Group in Singapore, added: “An increase in supply of less than 500,000 barrels per day in August will be enough to see bulls push the market higher. “
He added, “While there are concerns about the increase in delta variant cases in some areas, the market is doing a good job of ignoring it for now. ”