The prices of crude oil dropped on Tuesday as the oil rally ground to a halt with Brent Crude closing at $74.87 per barrel, down by 2.97% amidst market volatility, especially due to the OPEC+ crisis.
The OPEC+ crisis sent oil prices lurching as the cartel left the market wondering whether supply would rise or fall.
Crude soared briefly to the highest in over 6 years in New York after a bitter fight between Saudi Arabia and the United Arab Emirates blocked a production increase. Within hours, the rally had turned into a rout as traders speculated that the breakdown of talks could ultimately result in higher oil supplies.
U.S. WTI futures are retreating after reaching a record high on Tuesday morning. The OPEC+ standoff has been the latest in a string of bullish events that have sent crude prices up by almost 60% since the beginning of the year.
Meanwhile, the Joe Biden Administration has officially asked OPEC to raise production volumes after a few months of very little high-profile correspondence between Washington and Vienna.
WTI Crude gained 0.45% after dropping significantly earlier in the day to close at $73.64, Natural gas gained 1.02% to close at $3,674, Bonny Light recorded a decline of 0.60% to close at $74.16 per barrel, while OPEC basket rose by 0.70% to close at $75.71.