Oil Jumps to New Seven-Year High After OPEC+ Agrees Output Hike - Bloomberg

Oil Jumps to New Seven-Year High After OPEC+ Agrees Output Hike - Bloomberg

PRICES

WTI for March delivery rose 1.4% to $89.46 a barrel at 8:03 a.m. New York time. Brent for April settlement was up 1.4% at $90.38. Oil in New York neared $90 a barrel as OPEC+ agreed another modest hike in output, allaying fears of a bigger rise in supply from the group. West Texas Intermediate was at the highest level since 2014, after rallying 17% in January. Global benchmark Brent traded near $89 a barrel, with prices steeply backwardated in a reflection of market tightness. On paper, the Organization of Petroleum Exporting Countries will lift output by 400,000 barrels a day in March, maintaining the pace of restoring supply shuttered at the height of the pandemic. Still, there’s concern that some members of the alliance can’t meet their production targets, helping to strengthen a robust oil market. “That is what was expected, despite some rumours yesterday that OPEC+ might agree on a larger hike” said Carsten Fritsch an analyst at Commerzbank AG. “They keep their powder dry for the time being.”