Oil Prices Hit $91.31/Barrel As OPEC+ Meeting Holds Wednesday

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Oil prices continued to surge on Monday as Brent crude, global oil benchmark, hit $91.31 per barrel, ahead of an OPEC+ meeting on Wednesday.

A market survey on Monday morning indicated that Brent crude rose $1.28, or 1.4%, to $91.31 a barrel, after adding 69 cents on Friday compared to the US West Texas Intermediate (WTI) crude which added $1.14, or 1.3%, to $87.96 a barrel, having gained 21 cents on Friday.

It would be recalled that the benchmarks recorded their highest price levels since October 2014 and their sixth weekly gain in a row on Friday, with Brent crude rising to $91.70 and WTI peaking at$88.84.

The crude benchmarks were headed for about 17% gains this month, the most since February 2021.

Commenting on the development, an analyst at Fujitomi Securities, Toshitaka Tazawa, said:  “Underlying anxiety about global supply shortages, coupled with ongoing geopolitical risks, have caused the market to start the week on a strong note.

“With an expectation that OPEC+ will keep the existing policy of gradual increase of production, oil prices will likely stay on a bullish sentiment this week”, he added.

He predicted that Brent would remain above $90 and WTI will head towards $90 per barrel.

Recently, major producers in the Organisation of the Petroleum Exporting Countries (OPEC) and allies led by Russia, collectively known as OPEC+, have raised their output targets each month since August by 400,000 barrels per day (bpd) as they try to make up for record production cuts made in 2020.

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