Oil jumps 2%, hits 3-year high as OPEC+ sticks to output plan | Reuters

Oil jumps 2%, hits 3-year high as OPEC+ sticks to output plan | Reuters

Oil prices jumped 2% on Tuesday, with Brent futures hitting a three-year high while U.S. crude hit its highest since 2014 after the OPEC+ group of producers stuck to its planned output increase rather than pumping even more crude.

OPEC+ agreed in July to boost output by 400,000 barrels per day (bpd) each month until at least April 2022 to phase out 5.8 million bpd of existing production cuts.

Brent crude was up $1.60, or 2%, at $82.86 a barrel by 11:05 a.m. ET (1506 GMT), having risen 2.5% on Monday. U.S. West Texas Intermediate (WTI) oil rose $1.56, or 2%, to $79.18, after gaining 2.3% in the previous session.

"There is definitely a shortage in the market," said Robert Yawger, director of the futures division at Mizuho Americas.