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Oil Holds Gains Ahead Of OPEC+ Talks Resumption

OIL

Oil is higher, on track for a fourth day of gains. WTI is up $0.20 from settlement at $75.43/bbl while Brent is up $0.18 at $76.02. WTI gained 2.4% yesterday and briefly rose above $76/bbl after OPEC+ members failed to reach a final agreement on oil production plans in coming months. If the resumption of talks later today doesn't result in an agreement, the group would fall back on existing agreements and keep oil supply unchanged until April 2022 which could exacerbate deficit conditions in oil markets. The group had reportedly agreed in principle to boost oil production by 400k bpd a month from August to December but the deal was blocked by UAE at the last minute. The UAE said it would only back a deal if the baseline for its output cuts was increased.

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