Oil prices climbed on Tuesday, hitting their highest levels in at least three years, extending gains triggered during the previous session after the world's major oil producers announced they had decided to keep a cap on crude supplies.
Brent crude was up by 23 cents or 0.3% at $81.49 a barrel by 0341 GMT, having rising 2.5% on Monday. U.S. West Texas Intermediate (WTI) oil rose 12 cents or 0.2% to $77.74, after gaining 2.3% the previous session.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, collectively known as OPEC+, said on Monday it would maintain an agreement to increase oil production only gradually, ignoring calls from the United States and India to boost output as the world economy recovers, if patchily, from the coronavirus pandemic.
Oil prices have already surged more than 50% this year, a rise that has added to inflationary pressures that crude-consuming nations are concerned will derail recovery from the pandemic.
· Brent Oil has the $100 level in its crosshairs as OPEC+ refrains new supply – TDS
OPEC+ members decided to stick to raising output by 400,000 barrels per day and not more. In the opinion fo strategists at TD Securities, OPEC+ status-quo production hike may be fodder for $100 Brent Crude Oil.
· European Union leaders will discuss later in October the idea of setting up an EU strategic gas reserve and the decoupling of electricity prices from gas prices, the head of the European Commission Ursula von der Leyen said on Tuesday.
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