Oil gains on hopes that OPEC+ likely to maintain production cuts

04.01.2021 - Petr Mazaylo
Oil gains on hopes that OPEC+ likely to maintain production cuts

Oil prices climbed on Monday on expectations that OPEC+ may limit output at current levels starting February at a meeting later in the day. This was decided as the coronavirus pandemic heightens concerns about oil demand in the first half of the year.

Brent crude for March contract rose 1.2%, or 62 cents, at $52.42 per barrel. U.S. West Texas Intermediate crude for February delivery gained 1.1%, or 55 cents, at $49.07 per barrel.

Wider macro momentum trends, which include a weak dollar and investors betting on a demand recovery could boost oil prices. 

OPEC said that while oil demand is anticipated to rise by 5.9 million bpd to 95.9 million bpd this year, there are risks to the first half of 2021.

Prices closed 2020 nearly 20% below 2019’s average, still improving from the effect of global lockdowns implemented to contain COVID-19. The restrictions cut fuel demand despite major production cuts implemented throughout the year.

Meanwhile, U.S. crude oil production fell over 2 million bpd in October, according to a government report posted on Jan. 1.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.net or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?