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.
|USO||UNITED STATES OIL FUND L.P.||49.63||-6.25||-11.18%|
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.
|BNO||UNITED STS BRENT OIL FD LP UNIT||19.43||-2.29||-10.54%|
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.
Recently, Goldman Sachs told clients oil could hit the $90 per barrel level.