Breaking News: Markets React as Crude Oil Prices Climb Above $70
OPEC+ Delays Production Boost
U.S. crude oil rallied 2% on Thursday, boosting prices above $70 per barrel. This surge comes as OPEC+ has postponed a planned production increase of 180,000 barrels per day by two months, a decision two sources shared with CNBC.
Andy Lipow, president of Lipow Oil Associates, noted, “There’s a number of factors that are really working against OPEC over the next few months.” He emphasized that OPEC desires Brent crude prices between $85 and $90 per barrel to balance their budgets.
Current Energy Prices
- West Texas Intermediate: October contract at $70.58 per barrel, up $1.38, or 1.99%
- Brent: November contract at $73.99 per barrel, up $1.29, or 1.77%
- RBOB Gasoline: October contract at $1.96 per gallon, little changed
- Natural Gas: October contract at $2.26 per thousand cubic feet, up 12 cents, or 5.73%
U.S. crude oil inventories decreased by nearly 7 million barrels for the week ending August 30, according to the Energy Information Administration. Meanwhile, gasoline stocks rose by 800,000 barrels.
However, as markets have been volatile, crude oil futures have lost all gains for the year, down 4% this week, with the global benchmark Brent down 6%. Fatigue in oil demand, particularly in China, has raised concerns.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.