Baxia Markets
October 02, 2021

Crude oil surges pass $78 as OPEC meeting on the horizon

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On Friday, oil surged beyond $78 a barrel, approaching this week's three-year high, boosted by tight supplies due to OPEC+ output cuts, recovering demand, and a weaker US dollar. On Monday, the Organization of Petroleum Exporting Countries and Allies, or OPEC+, will convene. The company is gradually reversing last year's record output cuts, while sources suggest it is considering doing more. By 1403 GMT, Brent crude had risen 41 cents, or 0.5 percent, to $78.72, putting it on track for its fourth weekly gain. The West Texas Intermediate (WTI) in the United States gained 24 cents to $75.27, extending its winning streak to six weeks.




Brent has increased by more than 50% this year, hitting a three-year high of $80.75 on Tuesday. Consumers such as the United States and India are pressuring OPEC+ to increase production in order to assist lower prices. Oil is also gaining traction as power producers around the world switch away from natural gas due to rising natural gas prices. In Pakistan, Bangladesh, and the Middle East, generators have begun to switch fuels.


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