Investing.com – Crude oil futures were up for a third day on Thursday, extending sharp gains from the previous session after the Organization of the Petroleum Exporting Countries said it would leave production quotas unchanged.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at USD101.39 a barrel during European morning trade, gaining 0.29%.
It earlier rose to a daily high of USD101.70 a barrel.
Crude prices rallied nearly 2% on Wednesday after OPEC talks broke down, with representatives failing to reach agreement on production targets for the first time in at least 20 years.
Iran’s oil minister and acting OPEC President Mohammad Aliabadi said that the group would maintain its current production quota at 28.8 million barrels per day.
Saudi Arabia, OPEC’s biggest producer, Kuwait, Qatar and the United Arab Emirates voted for a 1.5 million-barrel-per-day increase in oil production, according to Saudi Arabian oil minister Ali al-Naimi.
Libya, Angola, Ecuador, Algeria, Iran and Venezuela were opposed to the increase, according to OPEC delegates.
Following the meeting, al-Naimi told reporters that it was “one of the worst we’ve ever had”. He added that Saudi Arabia was ready to supply “whatever the market needs”.
JP Morgan reiterated its forecast that oil prices will hit USD130 a barrel this year, saying that, “OPEC’s failure to agree to increase quotas shows that some of the group’s members have limited spare capacity.”
In a report published late Wednesday, the Wall Street bank said that, “It would be a stretch for Saudi Arabia to add on its own the 1.5 million barrels a day of production needed to supply the market.”
Crude prices were also boosted after government data released on Wednesday showed that total U.S. fuel supplies fell by 4.8 million barrels last week, blowing past expectations for a 1.4 million barrel decline.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for July delivery added 0.15% to trade at USD118.05 a barrel, up USD16.66 on its U.S. counterpart.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at USD101.39 a barrel during European morning trade, gaining 0.29%.
It earlier rose to a daily high of USD101.70 a barrel.
Crude prices rallied nearly 2% on Wednesday after OPEC talks broke down, with representatives failing to reach agreement on production targets for the first time in at least 20 years.
Iran’s oil minister and acting OPEC President Mohammad Aliabadi said that the group would maintain its current production quota at 28.8 million barrels per day.
Saudi Arabia, OPEC’s biggest producer, Kuwait, Qatar and the United Arab Emirates voted for a 1.5 million-barrel-per-day increase in oil production, according to Saudi Arabian oil minister Ali al-Naimi.
Libya, Angola, Ecuador, Algeria, Iran and Venezuela were opposed to the increase, according to OPEC delegates.
Following the meeting, al-Naimi told reporters that it was “one of the worst we’ve ever had”. He added that Saudi Arabia was ready to supply “whatever the market needs”.
JP Morgan reiterated its forecast that oil prices will hit USD130 a barrel this year, saying that, “OPEC’s failure to agree to increase quotas shows that some of the group’s members have limited spare capacity.”
In a report published late Wednesday, the Wall Street bank said that, “It would be a stretch for Saudi Arabia to add on its own the 1.5 million barrels a day of production needed to supply the market.”
Crude prices were also boosted after government data released on Wednesday showed that total U.S. fuel supplies fell by 4.8 million barrels last week, blowing past expectations for a 1.4 million barrel decline.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for July delivery added 0.15% to trade at USD118.05 a barrel, up USD16.66 on its U.S. counterpart.