2021.10.0419:06:00UTC+00Oil Futures Settle Sharply Higher As OPEC Decides To Stick With Its Output Plan

Crude oil prices rose sharply on Monday, riding on the decision of the Organization of the Petroleum Exporting Countries, Russia and their allies to stick to its current output policy amid rising demand for petroleum products across the world.

The group, known as OPEC+, has decided to raise output by 400,000 barrels per day, sticking to the decision arrived in July.

In July, the group agreed to increase monthly production by 400,000 barrels per day (bpd) until at least April 2022 and phase out existing reductions of 5.8 million barrels.

The markets are of the view that the level of production might not be sufficient to meet the now rising demand for energy.

West Texas Intermediate Crude oil futures for November settled with a gain of $1.74 or about 2.2% at $77.62 a barrel, the highest settlement since November 2014.

Brent crude futures climbed to $81.31 a barrel, gaining about 2.6%.