OPEC+ postponed a planned meeting Monday July 5, 2021, crashing hopes for the deal to raise the production to meeting the world’s increasing oil demand.
With this rescheduling the Oil prices spurred ever higher. The Brent crude price which is considered being a global benchmark has surged approximately 50% in 2021, increased by 1% to top USD77 per barrel. No further information was provided post the cancellation of the meeting.The official statement said that the date for the next meeting will be settled in due period.
The rise in drama rises as the Americans start hitting the roads for the independence day are welcomed with a seven-year high in gasoline prices, adding up to the increase headaches previously hitting the economy. The regular price of a gallon of normal gas in the U.S. stands around USD3.13, up 95 cents.US oil prices reached a mark of USD75 per barrel on Thursday July 1, 2021, for the very first time since 2018 and now trading around USD75.50. It’s an extraordinary recovery from April 2020 when Crude gone down to minus USD40 per barrel.
The recovery has been propelled in fraction by increasing demand for jet fuel and gasoline as the pandemic starts to fades and health restrictions ease.According to the Wall Street analysts only OPEC+ can rescue the situation by increasing the oil production to meet the increasing demand.Still the supply is being restricted as the deal among OPEC and allies including Russia. The partners have slowly supported back production which is forcefully sidelined through 2020’s oil crash.