WTI consolidates after posting fresh cycle highs

• WTI pulls back into consolidation following a busy day. 
• OPEC ministerial meeting delayed until Friday, more talks on oil output policy to follow.

The price of oil is trading at $74.94 and higher by 1.97% into the closing bell on Wall Street after rallying from a low of $73.41 to a fresh $76.20 cycle high.

The rally came on the back of indications that OPEC+ producers could increase output more slowly than expected in the coming months while rising global fuel demand causes supply to tighten.

Indeed, there were conflicting headlines out of the OPEC+ meeting overnight, with initial reports suggesting a solid if less-than-expected production increase of 400k barrels had been agreed between Russia and Saudi Arabia.

However, later reports suggested that the UAE blocked the deal, insisting its own baseline for cuts be raised.

Gains were pared when OPEC+ delayed its ministerial meeting until Friday to hold more talks on oil output policy after the United Arab Emirates blocked a plan for an immediate reduction in supply cuts.

''Headlines seem likely to continue to roil the market, with meetings ongoing,'' analysts at ANZ Bank explained.

''Steadily increasing oil prices aren’t helpful, with other commodities and sky-high freight costs already providing significant cost pressure.''

''Oil price increases are the classic sort of inflation targeters are supposed to look through, but that’s harder when everything is going up,'' the analysts added.