interactive investor comments on the price spike.
US oil and Brent crude oil hit a seven and three-year high respectively after OPEC and its allies decided not to accelerate plans to increase oil production.
Commenting, Victoria Scholar, Head of Investment, interactive investor, says: “The decision by OPEC+ on Monday to stick to its plans to gradually increase output by 400,000 bpd in November until April has propelled oil prices sharply higher again today.
“The sharply bullish move, which has seen Brent rally to almost $83 and West Texas hit the highest since 2014, suggests that there is an imbalance in the market with demand outstripping supply.
“Analysts are now eyeing $85 as the next hurdle for Brent with a break above this resistance pointing to the potential for a move towards $90. Brent crude has rallied around 60% year-to-date, contributing to the broader surge in commodity prices, which has seen the Bloomberg Commodity Spot Index top its 2011 peak this week and log an all-time high.”
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