The Brent Crude oil price broke through the $80 per barrel level Monday, as traders note continued tight supply and analysts warn it could top $100 per barrel. The move followed a recommendation from OPEC and other oil producers, that it would retain the current JMMC agreement to limit output.
By around 1430 BST, the price of Brent Crude oil was up by over 2% at close to $80 per barrel – a slight retreat from breaching that key level, earlier in the day. The price of Us WTI oil, meanwhile, was some 2% higher at around $72 per barrel.
OPEC oil output limits to remain
The price of oil has been creeping higher in recent weeks. It’s likely a meeting over the weekend between OPEC and non-OPEC members, including Russia, who have agreed to limit their output levels for a set period, helped lift prices higher Monday.
The JMMC met in Algeria and at the end of the meeting, shared the recommendation to keep output at the current level, as per the agreement.
“The JMMC noted that, despite growing uncertainties surrounding market fundamentals, including the economy, demand and supply, the participating producing countries of the DoC continue to seek a balanced and sustainably stable global oil market, serving the interests of consumers, producers, the industry and the global economy at large,” a statement released at the conclusion of the meeting, read.
“The Committee also expressed its satisfaction regarding the current oil market outlook, with an overall healthy balance between supply and demand,” it added.
Oil price could breach $100 per barrel
Also adding to upward pressure on the price of oil, were comments Monday that further tightening in supply could push the price of the valuable commodity above the $100 per barrel level.
Reports show that JP Morgan oil price analysts suggest “a spike to $90 per barrel is likely”. Meanwhile, other analysts have noted that potential oil price pressure are all pointing upwards.