Opec+ spat sparks oil rally, but don't rule out price crash

Singapore

AS A stand-off among petro-nations scuppered talks to ramp up output in the months ahead and drove crude prices to multi-year highs on Tuesday, some market watchers warned that continued friction could leave the bulls nursing their wounds as it could trigger a dramatic sell-off, not unlike last year's oil crash triggered by a price war between oil majors.

FXTM's senior research analyst Lukman Otunuga said: "If things are left in limbo with no deal reached, this may result in the group keeping output unchanged in August and the rest of 2021. Such a scenario could see higher oil prices.