LONDON — Oil prices climbed to multi-year highs shortly after a group of some of the world’s most powerful oil producers opted against a big supply boost.
Now energy analysts believe crude prices could be poised to rally toward $100 a barrel.
OPEC and non-OPEC partners, a group collectively referred to as OPEC+, said Monday that it would stick to its existing pact for a gradual increase in oil supply.
OPEC+ said it had “reconfirmed the production adjustment plan” in a statement published online shortly after relatively swift ministerial talks. This referred to its previously agreed decision to add 400,000 barrels per day to the market for the month of November.
The group’s decision on production policy had been widely expected, although some had hoped pressure from the U.S. and India to tame soaring oil prices might have been enough to persuade the group to offer more supply.
International benchmark Brent crude futures traded at $81.74 a barrel on Tuesday morning, up more than 0.5% for the session, while U.S. West Texas Intermediate futures stood at $77.92, roughly 0.4% higher.
Brent futures gained 2.5% to close at $81.26 on Monday, notching its highest settle for three years. WTI rose 2.3% to end the previous session at $77.62, reaching its highest settle in almost seven years.
Both oil contracts are up around 60% since the start of the year.
“The market is full of confidence,” Tamas Varga, senior analyst at PVM Oil Associates, said in a research note on Tuesday. “The question is whether this optimism is justified or not.”