Oil prices rise as market monitors OPEC+ policy, geopolitical tensions


A pumpjack is shown outside Midland-Odessa area in the Permian basin in Texas, U.S., July 17, 2018. Image taken July 17, 2018. 
Liz Hampton | Reuters

Crude oil futures rose on Wednesday, adding to a recent streak of gains after an OPEC+ committee meeting ended without recommending changes to production policy.

The West Texas Intermediate contract for May delivery gained 72 cents, or 0.85%, to $85.87 a barrel. The Brent contract for June delivery added 77 cents, or 0.87%, to $89.69.

Some members of OPEC and its allies led by Russia, called OPEC+, are voluntarily cutting 2.2 million barrels per day of production through at least the second quarter.

The Joint Ministerial Monitoring Committee concluded a meeting Wednesday without recommending changes to OPEC+ current production policy, according to two delegates. The committee can only make recommendations for OPEC+ to consider at a formal meeting.

U.S. crude and the global benchmark have rallied about 20% and 16% this year as improving economic growth expectations should push the oil market into a 450,000 barrel per day deficit in the second and third quarters, according to Bank of America.

Crude oil gained this week on mounting geopolitical tensions. Ukraine continued its campaign of drone strikes against Russian energy infrastructure, hitting the country’s third-largest oil refinery.

And OPEC member Iran vowed to respond against Israel, accusing the country of bombing its consulate in Damascus and killing seven officials of the Islamic Revolution Guards Corps.

The escalating tensions between Israel and Iran have raised fears again of a wider war in the Middle East that could disrupt crude supplies.

— CNBC’s Ruxandra Iordache contributed to this report.

Articles You May Like

The upcoming bitcoin halving is different from others before it. Here’s what investors need to know.
Total solar eclipse plunges parts of Mexico, US and Canada into darkness
How car buyers thinking hybrid over EV should make the decision
Caroline Flack’s celebrity status likely contributed to police charging her with domestic abuse, says mother
Assange’s wife tells Biden ‘do the right thing’ – as Australian PM says ‘enough is enough’