Oil touches multi-month highs as OPEC+ likely to cap output

Oil touches multi-month highs as OPEC+ likely to cap output

"Crude oil prices extending weekly gains on Saudi output cut pledge and demand growth optimism".

Oil prices surged after Saudi Arabia announced that it will slash its output levels by 1,000,000 barrels per day (bpd) over February and March! Following the news, the price of Brent Crude was up nearly 1% to $54.09 a barrel.

The statement said also that the US West Texas Intermediate crude futures reached $50.24 a barrel, which is also the highest since February 26, 2020. The contract closed up 0.4% on Thursday after also hitting its highest since February at $51.28.

The extra cuts, which come on top of those Saudi Arabia is making along with others in the OPEC+ group of oil producers, are aimed at supporting the country's economy and the oil market, he said.

The OPEC+ agreement will see the alliance cut 7.125 million barrels a day in February and 7.05 million barrels a day in March, according to a draft communique.

In that deal, the two groups, collectively called OPEC-plus, agreed to a complex deal to hold production broadly unchanged from current levels.

This has boosted the market's confidence that oil demand could recover with a return to normal economic and travel activities if the vaccines approved so far are effective and sufficient for the world's population. The announcement followed a meeting between the Organization of the Petroleum Exporting Countries and Russia, Reuters reported.

Freeport Area School District students to return to classroom
Regional School Unit 74 superintendent changes two half-days for students - scheduled for January 27 and March 10 - to full days. Prior to their return to classrooms, students will engage in orientation weeks for "safety and classroom protocols orientation".

Producers are wary of the impact of new lockdowns on oil demand.

Aside from that, worldwide political tension between S. Korea and Tehran had spurred up a crude oil buying-spree further.

Between July 2014 and December 2016, and again in March and April 2020, Saudi Arabia fought volume wars, insisting that it would not reduce output unless other countries made proportionate cuts. As of 07.05 GMT, WTI crude oil futures were trading slightly above the psychological level of $50 at $50.15.

However, a statement after the 13th OPEC and non-OPEC Ministerial Meeting (ONOMM) yesterday, indicated that after about 48 hours of bickering, the organisation resolved to further pump the agreed additional quantity into the market.

OPEC members typically meet twice a year at the cartel's headquarters in Vienna, but last year, summits were scheduled more frequently to maintain a strong influence on the oil market amidst the pandemic.

Moving on, the market traders seem cautious about placing any strong positions ahead of the release of the crude oil supply data from the US Energy Information Administration, which is due later in the day.

Related Articles

  • Japan Leads 2021 World’s Passports, Nigeria Stands 97th

    Japan Leads 2021 World’s Passports, Nigeria Stands 97th

    Of the countries of the former Yugoslavia, the best ranked is Slovenia, which is in 12th place, along with Latvia. The Covid-19 pandemic has transformed the travel landscape, potentially for decades to come.
    Jeep Grand Cherokee L

    Jeep Grand Cherokee L

    As we expected, the exterior design of the Grand Cherokee L is quite a bit different than the Grand Cherokee we're familiar with. Jeep has worked overtime to ensure that its most affordable product here has what it takes to woo and wow prospective buyers.
    Zimbabwe jails 3 for having New Year's party despite ban

    Zimbabwe jails 3 for having New Year's party despite ban

    University Hospitals of Derby and Burton NHS Foundation Trust (UHDB) confirmed on Wednesday it had seen 1,015 deaths. The strain is now rampant across London and the south-east of England, and emerging in every region of the UK.
  • Trump’s Executive Order Could Harm US Casinos in Macau

    Trump’s Executive Order Could Harm US Casinos in Macau

    It also said that the Legislature should ban high-ranking Hong Kong officials from entering Taiwan and freeze their assets. It is 33% owned by Alibaba and controlled by Alibaba founder Jack Ma, but is now unavailable for American users.
    Reports Reveal Nintendo Switch Pro Info Including OLED Screen and 4K Support

    Reports Reveal Nintendo Switch Pro Info Including OLED Screen and 4K Support

    We expect the Swicth Pro to offer 4K visuals, and the firmware also suggests this is true, but not on the Switch handheld itself. However, SciresM has mentioned that 4K support will be available thanks to the "Realtek 4K chip" inside the new dock.
    Ontario reports 3,270 new COVID cases today

    Ontario reports 3,270 new COVID cases today

    This includes at least 26 cases in California, 22 cases in Florida, two cases in Colorado , and one case each in Georgia and NY . In the province's long-term care homes, 1,180 residents now have COVID-19 and 20 new deaths have been reported today.
  • Capitol Police rejected offers of federal help to quell Trump supporters

    Capitol Police rejected offers of federal help to quell Trump supporters

    The young officer, who appears to be a member of the Capitol Police Department, is pinned between a riot shield and metal door. Sicknick has died due to injuries sustained while on-duty during the Wednesday riots at the Capitol.
    Explosives found at RNC and DNC headquarters in DC were real

    Explosives found at RNC and DNC headquarters in DC were real

    At the same time , rioters were attempting a coup, as Trump supporters entered congressional chambers in the Capitol. The explosive device at the RNC was destroyed by a bomb squad, according to The Times , citing an RNC official.
    Trump Proceeding With Ceremony Awarding Presidential Medal of Freedom to Three Golfers

    Trump Proceeding With Ceremony Awarding Presidential Medal of Freedom to Three Golfers

    Player and Sorenstam were announced recipients in March 2019, but the ceremony was postponed due to the coronavirus pandemic. She was the Associated Press Female Athlete of the Year six times and was inducted into the World Golf Hall of Fame in 1951.
  • Mercedes-Benz EQS: Next-gen MBUX Hyperscreen infotainment revealed

    Mercedes-Benz EQS: Next-gen MBUX Hyperscreen infotainment revealed

    The massive screen features no physical buttons, which could turn off some customers, though Mercedes could put them elsewhere. It's made up of a single plastic frame and a large glass cover with OLED displays for the center and front passenger.
    Cyberpunk 2077 loses 79 percent of its player base in one month

    Cyberpunk 2077 loses 79 percent of its player base in one month

    But GitHyp notes that this 79% drop isn't as typical for CD Projekt Red , who usually has a strong long-term playerbase. All dialogue spoken by the male version of V has been recorded by the character's original voice actor.
    ICC rankings, Australia, Kane Williamson, Kyle Jamieson

    ICC rankings, Australia, Kane Williamson, Kyle Jamieson

    Pakistan's team doctor, Dr Sohail Saleem, said: "We have seen improvement in Babar Azam's injury but he is yet to fully recover". From our perspective, we have been looking to build on it and grow and adjust when needed.