2020-12-04 12:40:00
OIL PRICE: ABOVE $49
REUTERS - DECEMBER 4, 2020 - Oil prices jumped around 2% on Friday, heading for a fifth week of gains, as major producers agreed on a compromise to continue some cuts to production to cope with coronavirus-hit demand even though these fell short of expectations.
Brent was up $1.04, or 2.1%, at $49.75 a barrel by 0555 GMT after gaining around 1% on Thursday. West Texas Intermediate rose 84 cents, or 1.8% to stand at $46.48 a barrel.
OPEC and Russia on Thursday agreed to ease deep oil output cuts from January by 500,000 barrels per day, but failed to come to a compromise on a broader policy for the rest of next year.
“OPEC+ clearing the hurdle of exiting its current cuts in a coordinated way ... reinforces our conviction in a steady and sustainable rally in oil prices through 2021,” Goldman Sachs said in a report after the decision.
The increase means the Organization of the Petroleum Exporting Countries (OPEC) and Russia, a group known as OPEC+, are set to reduce production by 7.2 million bpd, or 7% of global demand from January, compared with current cuts of 7.7 million bpd.
OPEC+ was expected to continue existing cuts until at least March, after backing down from plans to raise output by 2 million bpd.
Also supporting prices, a bipartisan $908 billion coronavirus aid plan gained momentum in the U.S. Congress.
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Earlier:
2020, December, 3, 12:00:00
OIL PRICE: NOT ABOVE $49
Brent was up 21 cents, or 0.4%, at $48.46 a barrel . WTI was 11 cents, or 0.2%, higher at $45.39 a barrel.
2020, December, 2, 14:45:00
OIL PRICE: NOT ABOVE $48
Brent were down 9 cents, or 0.2%, at $47.33 a barrel . WTI was down 11 cents, or 0.3%, at $44.44.
2020, December, 2, 14:40:00
RUSSIA'S OIL PRODUCTION 10 MBD
November production was down 11% on the year at 46.07 million mt, or around 11.26 million b/d. This was due to deeper output cuts under the OPEC+ agreement in 2020 compared with 2019.
2020, December, 1, 13:30:00
OIL PRICE: NEAR $48
Brent was up 31 cents at $48.19 a barrel . WTI was up 28 cents at $45.62.
2020, December, 1, 13:25:00
OPEC: OIL DEMAND GROWTH 6.1 MBD: 2021
Next year, the global economy is forecast to return to growth, expanding by an estimated at 4.4%, and oil demand growth is expected to be high, in the tune of 6.1 mb/d.
2020, November, 30, 12:00:00
OPEC+ RUSSIA CONSENSUS
Saudi Arabia and Russia had invited ministers on the nine-country monitoring committee that they co-chair to informal discussions to hash out positions ahead of the official meeting.
2020, November, 30, 11:55:00
OPEC+ RUSSIA EXTENSION
The fact that US shale is not recovering strongly is further cause for Russia to continue to support ongoing cooperation within OPEC+.
