Oil prices spike to 6-year high

Continental Resources Executive Chairman Harold Hamm argues that ‘a good part’ of the reason why oil prices are climbing is because of ‘the limit on supply.’

Oil prices surged to their highest level in over six years Tuesday after production talks broke down between OPEC and its allies. 

West Texas Intermediate crude oil, the U.S. benchmark, on Tuesday climbed by as much as $1.82 to $76.98 a barrel, the highest since November 2014, before paring its gains. Brent crude oil, the international standard, neared $78 a barrel for the first time since October 2018. Both energy components reversed into negative territory later in the session. 

Talks between the so-called OPEC+ group, consisting of OPEC members and their allies, called off output talks after the United Arab Emirates rejected a proposed eight-month extension to output curbs. The UAE, the world’s fourth-largest producer, wanted to pump out more of its oil under any agreement.

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