Why did oil prices shoot up so sharply on Tuesday and what does that mean for India?

Oil appears to be on a virtual boil as the normally lower WTI crude touched a price level of $76.91/bbl, the highest level we have seen since middle of 2014 when the oil price fall first started. Even Brent was higher at $77.78/bbl, but what is more interesting is that the normally wide spread between WTI crude and Brent Crude has narrowed substantially. The big news is that the OPEC talks ended inconclusive, virtually indicating a failure of talks.

The talks ran into problems after a clutch of OPEC members, including UAE, hinted at the need to push OPEC output by 400,000 bpd from August. They were just unwilling to concede more supply cuts, which was giving the other sellers a big advantage. Many OPEC nations are worried that if oil scaled higher it would kill demand and do long term damage to the prices. There are no timelines for resuming talks, but members are optimistic.