Oil Hits Over 1-Year High On OPEC+ Supply Discipline, Demand Prospects

• Oil prices surged on Wednesday, hitting their highest in more than a year from a decision by OPEC and allies to stick to the plan to gradually restore supply, along with the slow pace of nuclear talks between Iran and the United States. 
• Brent rose $1.1, or 1.6%, to settle at $71.35 a barrel. It reached $71.48 a barrel, its highest since January 2020. U.S. West Texas Intermediate (WTI) crude rose $1.11, or 1.6%, to settle at $68.83 a barrel. It hit $69.00 during the session, its highest since October 2018. 
• "The oil market welcomed the Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, decision to stick with its existing production plan, and in conjunction with positive global demand indications, prices are gaining further today," said Louise Dickson, Rystad Energy oil markets analyst. 
• Expecting a recovery in demand, OPEC+, agreed on Tuesday to maintain their plan to gradually ease supply curbs through July. 
• The OPEC+ meeting took 20 minutes, shortest in the group's history, indicating unity among members and their confidence in the market's recovery, analysts said. OPEC+ data shows the group is now more upbeat about the pace of rebalancing in the oil market than it was a month ago.

(Source: Reuters)