U.S. crude touches $80 for first time since November before OPEC+ decision

Oil booked a second consecutive monthly gain as front-month futures contracts trade at a premium to later months, typically a sign of a tightening market.

Koichiko Koichiko
Mar 2, 2024 - 21:04
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U.S. crude touches $80 for first time since November before OPEC+ decision

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U.S. crude oil futures touched $80 a barrel for the first time in nearly four months, as signs point to a tightening market ahead of an OPEC+ decision on production cuts.

The West Texas Intermediate contract for April gained 2.19%, or $1.71, to settle at $79.97 a barrel on Friday, marking the highest close for U.S. crude since Nov. 6. May Brent futures added 2.09%, or $1.71, to $83.94 a barrel.

U.S. crude and the global benchmark booked a second consecutive monthly gain in February as near-month contracts traded at a premium to later months, typically a sign of a tightening oil market.

OPEC+ is considering rolling over its production cuts through the second quarter and possibly the end of the year, three sources in the organization told Reuters this week. The cartel and its allies are expected to make a decision on the reductions in the first week of March, sources told Reuters.

OPEC's next formal Joint Ministerial Monitoring Committee meeting is scheduled for April 3.

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