Oil prices continue to rise, with West Texas Intermediate (WTI) up 57% in 2021, now at $76.38 a barrel. This is the highest WTI has traded since November 2014. Brent crude has also rose, now at $77.32 per barrel, its highest since the end of 2018. OPEC+ announced that it failed to reach a deal to coordinate an increase in oil production. OPEC+ had reduced production in 2020 as oil demand globally slowed in an attempt to keep the price at what the Saudi’s called a “sustainable” price.
The oil cartel had proposed a 400,000 bpd increase each month through December which would bring 2 million bpd back into the market but the United Arab Emirates rejected the idea with the UAE Minister of Energy and Infrastructure Suhail Al Mazrouei saying, “For us, it wasn’t a good deal.”
Global demand continues to increase as more parts of the world reopen from the Covid-19 pandemic. Demand from the transportation sector has seen the sharpest increase as consumers return to traveling and to their offices.