Oil prices jump to 7-year highs after OPEC+ agrees to stick to gradual production hikes

Oil prices spiked after OPEC+ on Monday agreed to keep its existing schedule of gradual hikes in oil production, adding to inflationary pressures engulfing global markets.

West Texas Intermediate crude, the US oil benchmark, rose as much as 3% to $78.13 per barrel, its highest since 2014. Brent crude, oil’s international benchmark, jumped as much as 3% to $81.77 per barrel.

The Organization of the Petroleum Exporting Countries as well as Russia and other non-member allies – also known as OPEC+ – ignored growing calls for opening the taps at a faster rate to bring down prices after oil rocketed to more than 50% this year.

Instead, the group “reconfirmed the production adjustment plan” to raise monthly overall production by 400,000 barrels per day in November, according to a statement released after the discussions.