The oil industry has remained pressurized by a supply glut and the ongoing uncertainty on the demand outlook with respect to the structural changes in the energy market and the pandemic. The recent vaccine updates and hopes that the pandemic may soon be under control, is providing support to a fundamentally battered energy market. As the year comes to an end, oil traders were eyeing OPEC and its allies’ commitments to production cuts for direction.
The 12th OPEC and non-OPEC Ministerial Meeting was initially delayed as OPEC+ needed more time to reach a deal which kept the oil traders on edge. After tough negotiations, the meeting concluded on a positive note on Thursday:
OPEC and its allies expect stockpiles to fall in the first quarter by delaying the return on supply compared to the original plan.
Crude oil prices firmed higher buoyed by the compromise deal despite this week’s bearish oil reports:
As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading at around $46.40 and $49.67 respectively and the US oil is poised to post its fifth weekly gain.
The vaccine updates and OPEC deal have helped the crude oil prices to pare majority of the losses seen during COVID March lows.
Source: GO MT4
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