Oil prices hit highest level in six years after OPEC talks fail

Abby Smith
·1 min read

U.S. oil prices hit multi-year highs Tuesday after the group of oil-producing nations known as OPEC+ failed to reach an agreement to boost output.

The West Texas Intermediate futures, the U.S. benchmark, rose to $76.98 a barrel early Tuesday, the highest level since 2014, before falling slightly to $74.56 a barrel. Brent crude, the global benchmark, hit $77.84 a barrel early Tuesday, its highest level since October 2018, before lowering to $75.74.

OIL AND NATURAL GAS INDUSTRY LEADERS WORK TO LOWER METHANE EMISSION RATES

The jump in oil prices comes as demand is returning rapidly as the United States and other major economies open back up as more people are vaccinated. However, even as demand increases, the OPEC+ nations have still been withholding around 6 million barrels of oil per day from the market.

The countries were meeting to strike a deal to increase output, but they abandoned the talks Monday after the United Arab Emirates refused to agree. It is unclear when talks will continue.

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The Biden administration is hoping to see the oil cartel reach a deal to boost output and slow the rise in oil prices. Over the Fourth of July weekend, people experienced the highest gasoline prices in roughly seven years, with a national average of more than $3 per gallon, according to AAA.

However, without a boost in OPEC+ production, analysts expect prices could continue to rise as demand improves.

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Tags: News, Energy and Environment, Oil, OPEC

Original Author: Abby Smith

Original Location: Oil prices hit highest level in six years after OPEC talks fail

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