2020-12-07 13:30:00
OIL PRICE: NOT ABOVE $49 AGAIN
REUTERS - DECEMBER 7, 2020 - Oil prices slipped on Monday as the positive impact from COVID-19 vaccines and an OPEC+ deal on oil production cuts was undermined by surging coronavirus cases and heightened tensions between the United States and China.
Brent crude fell 76 cents, or 1.5%, to $48.49 a barrel by 0911 GMT. U.S. crude was down 82 cents, or 1.8%, at $45.44.
“Surging virus cases and a Reuters report signalling the United States is preparing new sanctions on Chinese officials ... outweighed the positive sentiment driven by vaccine news,” said Hussein Sayed, chief market strategist at FXTM.
Reuters exclusively reported that the United States was preparing to impose sanctions on at least a dozen Chinese officials over their alleged role in Beijing’s disqualification of elected opposition legislators in Hong Kong.
Both oil contracts gained last week after OPEC+, comprising of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, agreed to increase output slightly from January but continue the bulk of existing supply curbs.
“With the OPEC deal in the bag, now traders looked back at fundamentals, demand and supply, and they were forced to come back to earth as things are not looking good in the short term,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy.
A surge in coronavirus cases globally has forced a series of renewed lockdowns, including strict new measures in the U.S. state of California and in Germany and South Korea.
Iran, meanwhile, has instructed its oil ministry to prepare installations for the production and sale of crude oil at full capacity within three months, state media said on Sunday.
“Adding to the pressure on oil prices is the potential Iranian increase to production in three months. Iran is optimistic the U.S. will ease restrictions if they return back to the 2015 nuclear deal,” said Edward Moya, senior market analyst at OANDA.
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Earlier:
2020, December, 4, 12:40:00
OIL PRICE: ABOVE $49
Brent was up $1.04, or 2.1%, at $49.75 a barrel . WTI rose 84 cents, or 1.8% to stand at $46.48 a barrel.
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, 13:25:00
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+.
