OPIS Energy analysis global head Tom Kloza warns that heating oil and diesel prices could increase ‘incredibly’ with current demand.
Global crude prices surged to multiyear highs on Monday after OPEC stood firm in keeping production at current levels.
NYMEX crude closed up 2.29% to $77.62 per barrel, the highest level since November 2014.
TECH STOCKS HAMMERED AS NASDAQ FALLS 2.1%
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| USO | UNITED STATES OIL FUND L.P. | 54.49 | +1.23 | +2.31% |
Brent crude, the global benchmark, jumped 2.50% to $81.26 — the highest since October 2018.
Gas prices continue to climb with the latest average hitting $3.20 per gallon, as tracked by AAA.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BNO | UNITED STS BRENT OIL FD LP UNIT | 21.43 | +0.54 | +2.58% |
In a statement, OPEC and non-OPEC participating countries “reconfirmed the production adjustment plan and the monthly production adjustment mechanism approved at the 19th OPEC and non-OPEC Ministerial Meeting and the decision to adjust upward the monthly overall production by 0.4 mb/d for the month of November 2021, as per the attached schedule.”
Edward Moya, senior market analyst for the Americas, warned prices could go even higher.
“OPEC+ is slowly turning into the villain for the global economic recovery. Higher oil prices are coming and the energy traders could easily see $90 oil on any surprise disruption to output, a colder autumn, or the unleashing of pent-up travel demand if COVID cases continue to fall,” he said in a reasearch note.
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Recently, Goldman Sachs told clients oil could hit the $90 per barrel level.
