Crude oil prices rose on Tuesday to reach their highest levels since 2018 after OPEC+ ended days of talks without an agreement to boost production in the face of rising global demand.
Brent crude futures edged up 0.3 percent to $77.36, climbing above $77 a barrel for the first time since 2018 this week. U.S. crude futures were up 1.6 percent at $76.33 after having hit as high as $76.98 earlier in the session.
The Organization of the Petroleum Exporting Countries and allies, a grouping known as OPEC+, abandoned oil output talks on Monday amid Saudi-UAE standoff.
The United Arab Emirates agreed to go along with output increases but rejected a separate proposal to extend curbs to end-2022.
No date was set for resuming talks but Iraqi Oil Minister Ihsan Abdul Jabbar said he hoped that within 10 days a date would be set for a new OPEC+ meeting.
Analysts warned that large inventory drawdowns and uncertainty about future supply would add to near-term inflationary pressures that threaten to undermine the global economic recovery.
The Biden administration has urged the group to get its act together. The White House is “closely monitoring the OPEC+ negotiations and their impact on the global economic recovery,” a spokesperson said.