Oil prices rose nearly 2% Wednesday after OPEC said it was not an agreement to increase oil production to reach. U.S. crude rose $ 1.68, or 1.7%, to $ 100.70 a barrel. Oil prices trading around $ 1 just before the OPEC announcement. The price of Brent crude – the European benchmark – rose 1.5% to $ 118.35 a barrel.
quarterly meeting of OPEC was widely watched by analysts. The cartel was under great pressure to increase output as oil prices approached $ 120 a barrel last month. Prices spiked on supply and demand concerns amid signs of a strengthening global economy and the ongoing violence in the Middle East.
OPEC members themselves, particularly Saudi Arabia, contested the idea that the world was short on supply. Wall Street speculators were due to the rise in prices, they argued.
Many analysts agree with this take. But others, including the International Energy Agency and politicians in the oil-importing counties, urged the cartel to increase production.
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Oil prices have since retreated from their highs in recent months as global economic growth has shown signs of delays and protests in the Middle East have largely steered clear of the major oil exporters.
OPEC said it will still have three months to an increase in oil production
source:cnnmoney
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