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Crude oil prices climbed higher on Tuesday, extending recent gains following the Organization of the Petroleum Exporting Countries and other major oil producers including Russia, collectively known as OPEC+, deciding to stick to their plan of gradually raising crude production.

Amid rising demand for energy and surging prices, analysts were hoping that the cartel will significantly increase output. However, the group has decided to stick to their earlier plan for now.

The 23-member group said that it would raise production by a modest 400,000 barrels a day in November, less than 0.5 percent of world demand, under a deal reached in July to return output to pre-Covid-19 levels.

In effect, the group shrugged off political and commercial pressure to ramp up oil output to ease a tightening market.

West Texas Intermediate Crude oil futures for November ended higher by $1.31 or about 1.7% at $78.93 a barrel, a fresh 7-year high.

Brent crude futures climbed to their highest level in three years, rising to $83.11 a barrel.

Meanwhile, Natural Gas contracts for November soared $0.55 or about 9.5% to settle at $6.312/mln Btus today.

Markets now look ahead to weekly oil reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA).

The API’s report is due later today, while the EIA is scheduled to release its inventory data Wednesday morning.


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