Oil prices skyrocketed on Tuesday due to disagreements between members of the Organization of the Petroleum Exporting Countries (OPEC) and their OPEC + allies, which could lead to restrictions on supplies from the cartel in the coming years.
The benchmark US WTI crude oil for August delivery topped $ 76.90 for the first time since November 2014, rising to $ 76.98.
The European benchmark, a barrel of North Sea Brent for September delivery, meanwhile, rose to $ 77.84 for the first time since late October 2018.
“The lack of agreement to increase production in August and beyond leaves the market even more scarce than before,” explains Markets.com's Neil Wilson.
Members of the Organization of the Petroleum Exporting Countries (OPEC) and their OPEC + allies canceled Monday's meeting without meeting again amid disagreements with the United Arab Emirates.
This negotiation failure, if not resolved, could result in a resumption in August or even later of the production quotas applied in July, rather than an increase in production over the envisaged time frame. At the same time, the global economy, which is gaining momentum after covid restrictions, needs more "black gold".
Earlier Monday in Europe natural gas prices have risen at a record amid the start of repairs on the Yamal-Europe transnational gas pipeline.