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  • Oil prices rally on OPEC+ decision slow-burning Iran talks.
  • Traders were also awaiting  US  crude inventories data.  

Oil prices rallied to a print a fresh 1-year high on Wednesday following the announcements of a key decision by The Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+.

US  West Texas Intermediate (WTI) spot prices surged over 1% to reach a high of $68.97 from a low of $67.80 by the closing bell on Wall Street.  

OPEC+ agreed to stand pat on  the group’s  plan to gradually restore supply in a  meeting that took 20 minutes, the shortest in the group’s history.

The confidence of the group ricocheted across the markets and oil climbed on their  upbeat assessment about the pace of rebalancing in the oil market.

In a comment to the press, Saudi Energy Minister Prince Abdulaziz bin Salman said solid demand recovery in the United States and China and the pace of COVID-19 vaccine rollouts can only lead to a further rebalancing of the global oil market.

Meanwhile, the Iran nuclear talks are a slow burner that has eradicated initial knee-jerk fears of additional supply to the market.

Traders also awaited US  crude inventories whereby crude inventory is expected to decline.