Shareholders of some ASX-listed oil producers can rejoice as oil prices hit multi-year highs today.
The value of the black liquid is soaring alongside demand as hopes oil producing countries might bump up supply have waned.
According to data from CBNC, the price of U.S. West Texas Intermediate oil is up 0.2% at US$79.11 a barrel. Meanwhile, the Brent crude oil price has gained 1.3% to reach US$82.56.
Both oil prices have gained more than 4% since Friday's close.
Image source: Getty Images
What's driving oil prices higher?
The major driver of oil prices this week is the Organisation of the Petroleum Exporting Countries, Russia, and their allies, known as OPEC+.
On Monday, OPEC+ announced it won't be further increasing oil production despite rising global demand.
Increasing supply would, of course, ease demand and push back against rising prices.
OPEC+ previously committed to increasing oil production by 400,000 barrels per day each month until all oil withheld during the course of the pandemic is back on the market.
According to reports by Reuters, major oil customers, including India and the United States, had called for an increase in the amount of oil hitting the market.
But OPEC+ is reportedly concerned another wave of COVID-19 could see it oversupplying the market once more.
The news from the Organisation comes around 6 weeks after Hurricane Ida halted oil production in the Gulf of Mexico, putting a large dint in the United States' oil supply chain.
These ASX shares are soaring alongside the price of oil
While rising oil prices spell trouble for some, it's good news for ASX oil producers.
Shares in Woodside Petroleum Limited (ASX: WPL) are performing well this week so far, jumping 5.5%.
The Santos Ltd (ASX: STO) share price has also taken off this week, gaining 4% since Friday's close.
Finally, the Oil Search Ltd (ASX: OSH) share price is bringing up the rear of the major oil producers, gaining 3.7% so far this week.
