And tightness in the global natural gas market could put more upward pressure on crude as high natgas prices encourage switching to oil.
Oil fell after OPEC+ agreed to only a gradual rise in crude supply, defying calls from the Biden administration for a bigger increase.
Investors are awaiting a key read on US consumer inflation and the first of the big Wall Street banks' earnings.
Former US Energy Secretary Dan Brouillette said the OPEC+ rupture could cause oil prices to rocket higher.
The Brent benchmark crude price soared on Tuesday after OPEC+ talks over production increases collapsed in acrimony.
Now that there's no deal to boost production more quickly, it could signal tighter supply and rising prices.
Analysts say that if the deadlock is not resolved, oil prices could either skyrocket if supply is throttled, or bottom out if OPEC+ breaks apart.
OPEC+ may add 2 million barrels of oil per day to the market, according to a Reuters report. The group is holding a virtual meeting on Thursday.
The IEA said COVID will keep impacting demand due to continued outbreaks, unequal vaccination rates and shifts in consumer behaviour.
A decision by OPEC and its allies to keep production cuts in place sent oil prices flying up by 5% on Thursday.
US equities jumped on Friday after disappointing labour-market data boosted hopes for an end-of-year stimulus compromise. The S&P 500, Dow Jones industrial average, and Nasdaq composite all closed at record highs. The US added 245,000 nonfarm payrolls in November, handily missing the consensus economist estimate of 460,000 additions. The unemployment […]
Oil prices neared $US50 for the first time since its historic crash this year after OPEC+ agreed to raise supply in January. Producers agreed to increase output by 500,000 barrels per day in January, far lower than the 2 million barrels expected. Plans on further output levels will be decided […]
OPEC cut its forecasts for 2020 and 2021 global oil demand on Wednesday, citing rising COVID-19 cases and government lockdowns as a risk to the commodity market. In its November report, the lowered its 2020 demand projection by 0.3 million barrels to 90 million barrels per day. The revision follows […]
The Organisation of Petroleum Exporting Countries and its allies urged “full conformity” with oil production cuts at its online meeting held on Thursday. In a separate news conference, Saudi Arabia’s energy minister warned that those traders who wish to short the oil market would be hurt “like hell.” Saudi’s Prince […]
Saudi Arabia won’t be cutting oil production any time soon even though prices have slipped 9% in the last week. The Financial Times reported, citing 5 confidential sources, that Riyadh is not looking to cut output. Saudi Arabia is concerned that if it cuts production, other countries won’t reduce output, […]
Global stocks were mixed Wednesday as investors reacted to the S&P 500 closing at its highest level ever on Tuesday. Asian stocks slipped after US President Trump said he cancelled trade talks with China last weekend over its handling of the COVID-19 pandemic, further escalating already heightened tensions. In Europe, […]
China’s Shanghai Composite rose to a 2-year high on Monday after the country’s central announced $US101 billion of fresh stimulus. The index moved up 2.3% to 3438.80. The last time it reached that level was in January 2018. Chinese stocks may have also been supported by a delay in a […]