Oil prices rose Monday morning to highs last seen in October 2018. Oil prices have been rising on growing demand amid controlled supply by OPEC+.
The maintained production cuts by OPEC+ as economies reopen has resulted in fifth consecutive rise in oil prices last week. Investors are looking forward to the outcome of this week’s OPEC+ meeting.
Brent crude rose as high as $76.59 per barrel. Although it has slightly retreated and currently trading at $76.23 per barrel, up 0.07%.
Western Texas Intermediate rose to $74.45 per barrel while Western Canadian Select sold at $61.25 per barrel. Nigerian Bonny Light traded at $75.09 per barrel.
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OPEC+ is however expected to ease supply as it meets on July 1, due to the rising oil demand.
ANZ and ING expect OPEC+ to increase output by about 500,000 bpd in August, which is likely to support higher prices.
“Anything less than this amount would likely be enough to see bulls push the market higher in the near term,” ING analysts said in a note.
The US oil rigs count increased for the 11th straight month in June. 13 rigs were added in June, the smallest monthly increase since September 2020, according to Reuters.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
