A pumpjack is shown outside Midland-Odessa area in the Permian basin in Texas, U.S., July 17, 2018. Image taken July 17, 2018.
Liz Hampton | Reuters
Crude oil futures rose on Wednesday, adding to a recent streak of gains after an OPEC+ technical meeting ended without recommending changes to production policy.
The West Texas Intermediate contract for May delivery gained 72 cents, or 0.85%, to $85.87 a barrel. The Brent contract for June delivery added 77 cents, or 0.87%, to $89.69.
U.S. crude and the global benchmark have rallied about 20% and 16% this year as improving economic growth expectations should push the oil market into a 450,000 barrel per day deficit in the second and third quarters, according to Bank of America.
A technical meeting of OPEC+ concluded Wednesday without recommending changes to production cuts. Some members of OPEC+ are voluntarily cutting 2.2 million barrels per day of production through at least the second quarter.
Crude oil gained this week on mounting geopolitical tensions. Ukraine continued its campaign of drone strikes against Russian energy infrastructure, hitting the country’s third-largest oil refinery.
And OPEC member Iran vowed to respond against Israel, accusing the country of bombing its consulate in Damascus and killing seven officials of the Islamic Revolution Guards Corps.
The escalating tensions between Israel and Iran have raised fears again of a wider war in the Middle East that could disrupt crude supplies.
— CNBC’s Ruxandra Iordache contributed to this report.