Oil extends gains after surprise Saudi output cut

Oil extends gains after surprise Saudi output cut”

"The 1 million barrel per day reduction is nothing to scoff at and it will tip the market back into a supply deficit for the first quarter at least, even if demand is set to dip slightly on the new virus strain", said Howie Lee, an economist at Oversea-Chinese Banking Corp.

Saudi Arabia has pledged additional, voluntary oil output cuts of one million barrels per day (bpd) in February and March as part of a deal under which most Opec+ producers will hold production steady in the face of new coronavirus lockdowns.

United States crude rose 1.6% to the highest since February 2020 at $50.57 a barrel, after opening at $49.79, and hit a low of $49.71, and Brent crude rose 2.1% to, the highest since February at $54.60 a barrel, after opening at $53.51, and hit a low of $53.51.

The worldwide oil benchmark, Brent crude, extended its gains on Friday, rising above $55 per barrel, in what is a potential boost to Nigeria's crude oil export revenue. The contract on Tuesday closed up 4.6%.

"From our read-through of the recently-announced Petronas Activity Outlook 2021-2023, we gathered that overall activity levels are still expected to stagnate for the coming year, as most of the value chains are expected to see flattish or lower activity levels in 2021, from 2020".

The group initially failed to agree on production levels for February during a meeting on Monday.

More news: Quebec COVID curfew raises concerns over enforcement, profiling, advocates say

Opec+, a group combining Opec and allies such as Russian Federation, meets later on Monday after a meeting of Opec+ experts on Sunday when Opec Secretary-General Mohammad Barkindo said he saw downside risks for oil markets in the first half of 2021.

In order for Oil prices to continue its return to pre-pandemic levels, not only must the global economic recovery stay the course, OPEC+ members must also demonstrate a unified will and maintain the discipline to manage output levels.
As per the latest report, the Saudi announcement came as the Organization of the Petroleum Exporting Countries and allies, or OPEC+, closed the second day of its Joint Ministerial Monitoring Committee and the 13th OPEC and non-OPEC Ministerial Meeting.

USA crude gained 5.2% yesterday, and Brent crude futures rose 5.5%, the largest daily gain since November 9, after the OPEC-Plus monthly meeting concluded.

Analysts see oil prices to be in a delicate balancing act to sustain the current uptrend, while demand is nearly certain to recover going into 2021.

U.S. crude stocks fell and fuel inventories rose, the Energy Information Administration said on Wednesday.

Like this



09 January 2021
US Capitol police officer dies from injuries suffered during pro-Trump riot
Chief Sund had resisted calls to step down, with a spokesperson saying earlier that he meant to stay in his position. Gary Peters, who is in line to become the panel's chairman under Democratic control.

09 January 2021
Mercedes-Benz reveals full-width (1 410 mm!) MBUX Hyperscreen
The system can also load up to seven different driver profiles, so you can customize how you'd like the interface to appear. Mercedes-Benz says there's no need to worry as the glass itself is rendered at temperatures of 650 degrees Celsius.

09 January 2021
Thomas, English share lead to start PGA season-opening Tournament of Champions
The majority of the 42 players in the field are returning from a lengthy layoff. Justin Thomas has won the tournament two of the last four years.

09 January 2021
Unemployment Claims at 787K Last Week
But in a high-pressure labor market, those employees quickly find jobs and many never show up on the employment rolls. It was a sharp decline from the prior week as various states, including Florida, didn't report any PUA claims.

09 January 2021
Cruise Lines Continue to Push Back Return-to-Sail Dates
Guests and their travel agents are being notified of the cancellations and options for Future Cruise Credits (FCCs) and rebooking. The company is part of Carnival Corporation.

09 January 2021
Apple CEO Tim Cook’s made $15 million past year
Apple said that Cook earned 256 times as much as its median employee, who earned $57,783 in 2020. In the SEC filing, Apple also revealed that Cook is set to get a long-term equity award in 2021.

09 January 2021
'Police Academy' Actress Marion Ramsey Has Sadly Passed Away at 73
She played the timid, sensitive Hooks, whose high voice would turn into a mighty shout when she needed to assert authority. Additional film and TV credits include MacGyver, Beverly Hills, 90210, The Nanny, Modern Family , and Return to Babylon .

09 January 2021
Anthony Joshua has 'a confidence issue', according to Tyson Fury
It is the night boxing longs for in 2021 but there are problems to solve before punches can be thrown. Fury believes that he can take advantage of these confidence issues and get the better of Joshua .

09 January 2021
Pipe Bomb Found at Republican National Committee Headquarters — NY Times
There was reportedly at least one improvised explosive device found on Capitol grounds , NBC News reported. Another homemade bomb was found and detonated safely in the Capitol complex, CNN reported .

09 January 2021
Gary Player, Annika Sorenstam honoured by Donald Trump with Medal of Freedom
During her dominating career, Sorenstam won three ANA Inspiration tournaments, three Women's PGA Championships, three U.S. Her groundbreaking professional golf career came after an outstanding amateur sports career.