Oil prices rise on hopes of OPEC+ supply curb

16.11.2020 - Petr Mazaylo
Oil prices rise on hopes of OPEC+ supply curb

Oil prices rose on Monday, recovering last session’s losses as hopes that OPEC and its allies will maintain existing output cuts, thus offsetting worries about weak fuel demand. This came amid the resurgence of global coronavirus cases and rising production from Libya. 

Brent crude futures for January climbed 1%, or 44 cents, at $43.22 per barrel. U.S. West Texas Intermediate crude for December delivery rose 1.4%, or 54 cents, at $40.67 per barrel.

Both benchmarks climbed over 8% last week on hopes for a COVID-19 vaccine and that OPEC+ will hold onto current output cuts until next year. 

OPEC+ has been slashing output by 7.7 million bpd with a 101% compliance rate in October. However, the organization is planning to increase production by 2 million bpd from January.

The ministerial committee of OPEC+ is set to meet on Tuesday to assess the need for changes in production quotas. 

However, rising production from Libya posed a challenge to the cuts, while a slowdown in traffic across the United States and Europe weighed on fuel demand recovery hopes. 

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?