Highlights
- Crude oil prices rose on Wednesday.
- OPEC+ sticks to its plan for gradually increasing the output amid stronger demand for petroleum products.
- US crude inventories tumbled to three-year lows amid skyrocketing energy demand.
Crude oil prices rallied on Wednesday after the US crude inventories tumbled to three-year lows amid skyrocketing energy demand. December delivery Brent Crude oil futures last traded at US$86.03 per barrel up 0.16%, whereas December delivery WTI crude oil futures traded 0.49% up at US$83.83 per barrel as of 21 October 2021 at 11:55 AM AEST.
The decision of the OPEC+ that was taken during the start of the month to increase production gradually has ignited the oil prices. OPEC along with its allies, together known as OPEC+ agreed in July to increase the production by 400,000 bpd each month till April 2022 to phase out the existing production cuts.
Oil’s bullish sentiments
The rising energy demand and the outcomes of OPEC meeting keep the sentiments for oil bullish. Refiners across the globe have been increasing the output due to high margins.

Source: Copyright © 2021 Kalkine Media
As per the U.S. Energy Information Administration, US crude stocks tumbled by 431,000 barrels in the most recent week. Additionally, the gasoline stocks plunged by more than five million barrels due to maintenance activities at refineries.
The US stocks at the Cushing delivery hub hit the lowest level since October 2018 and gasoline stocks are at the lowest level since November 2019.
Bottom Line
Crude oil prices surged to record high levels after the US crude inventories tumbled to three-year lows amid skyrocketing energy demand and the plan of OPEC and its allies to gradually increase the output.