Oil Hits Two-Year High With OPEC+ Striking Bullish Tone

[MovieMadness]

Oil Hits Two-Year High With OPEC+ Striking Bullish Tone

U.S. crude futures climbed to the highest in more than two-and-a-half years after the OPEC+ alliance forecast a tightening global market, while international efforts to revive a nuclear deal with Iran were yet to reach a breakthrough.

West Texas Intermediate rose as much as 3.8% from Friday’s close to $68.87 a barrel, while global benchmark Brent topped $70, a level it has failed to hold for a sustained period since 2019. The oil glut built up during the coronavirus pandemic has almost gone and stockpiles will slide rapidly in the second half of the year, according to an assessment of the market from an OPEC+ committee.

Traders also continue to follow the progress of negotiations between Tehran and world powers to revive the 2015 nuclear agreement, paving the way for increased oil supplies from Iran. The country said it hopes to fully reactivate the deal before the end of the government’s term in August, raising the prospect that a solution may not be found in the current round of talks in Vienna.

“OPEC is seeing tightness” while the “Iran situation is very much a jump ball at this point,” said John Kilduff, a partner at Again Capital LLC. “It is all very bullish against the backdrop of demand that keeps surging, with the exception of India.”

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Oil prices have soared because Biden stopped pipelines and cut drilling, we are moving back to the Jimmy Carter days.

[Bogie56]

Let's hope it keeps going up.

[Sepiatone]

1 hour ago, MovieMadness said:

 

Oil prices have soared because Biden stopped pipelines and cut drilling, we are moving back to the Jimmy Carter days.

Fine with me.  Back then a gallon of gas was just $1.77!   

Sepiatone

[txfilmfan]

2 hours ago, MovieMadness said:

Oil Hits Two-Year High With OPEC+ Striking Bullish Tone

U.S. crude futures climbed to the highest in more than two-and-a-half years after the OPEC+ alliance forecast a tightening global market, while international efforts to revive a nuclear deal with Iran were yet to reach a breakthrough.

West Texas Intermediate rose as much as 3.8% from Friday’s close to $68.87 a barrel, while global benchmark Brent topped $70, a level it has failed to hold for a sustained period since 2019. The oil glut built up during the coronavirus pandemic has almost gone and stockpiles will slide rapidly in the second half of the year, according to an assessment of the market from an OPEC+ committee.

Traders also continue to follow the progress of negotiations between Tehran and world powers to revive the 2015 nuclear agreement, paving the way for increased oil supplies from Iran. The country said it hopes to fully reactivate the deal before the end of the government’s term in August, raising the prospect that a solution may not be found in the current round of talks in Vienna.

“OPEC is seeing tightness” while the “Iran situation is very much a jump ball at this point,” said John Kilduff, a partner at Again Capital LLC. “It is all very bullish against the backdrop of demand that keeps surging, with the exception of India.”

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Oil prices have soared because Biden stopped pipelines and cut drilling, we are moving back to the Jimmy Carter days.

Nope.  Oil is a global commodity bought and sold on a global market basis.  It's global production (not just US production) and consumption that sets rates.   Many US oil fields are in secondary or tertiary recovery, meaning it is more expensive to produce.  When low demand keeps prices down, oil production slows down in the US, as it's no longer profitable for companies to extract the stuff.  

The global pandemic depressed demand, thus prices were lower in 2020 and as a consequence, US production decreased.  

Biden can't "cut drilling", except on federal lands, and such cuts cause nary a blip on the global oil market.