WTI moves to fresh cycle highs on OPEC meeting cancellation

  • US oil is higher as OPEC+ meeting is cancelled.
  • Bulls take price to fresh cycle highs.

The price of WTI met a fresh high cycle on Monday to $76.31 as news that OPEC+ nations had called off talks on output levels, meaning no deal to boost production has been agreed.

Spot WTI rallied from a low of $74.78 and ended 1.41% higher without a date to resume the negotiations being set after the United Arab Emirates rebuffed a proposed eight-month extension to output curbs.

OPEC+ had already agreed on record output cuts in 2020 to cope with a COVID-induced price crash and the producers have been gradually easing the output restrictions as the global economy opens up. 

However, Friday’s plan to lift output by about 2 million barrels per day (bpd) from August to December 2021 and to extend the pact on a series of gradual output shifts to the end of 2022 was blocked by the UAE.

Since the clash, oil prices have been bid within a volatile move to the upside:

WTI hourly chart

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