Oil prices surged on Tuesday, supported by a new agreement by major producers to further reduce production levels amid a new wave of the Coronavirus pandemic.<\/p>\n\n\n\n
The Organization of the Petroleum Exporting Countries (OPEC) and other top producers, forming an alliance known as OPEC+, reached an agreement on Tuesday to curb output in February, as suggested by Saudi Arabia, with the Kingdom voluntarily choosing to apply larger production cuts.<\/p>\n\n\n\n
Meanwhile, Russia and Kazakhstan could both raise production by a combined 75,000 barrels per day (b\/d).<\/p>\n\n\n\n
Brent crude futures for March delivery rose by $2.51, or 4.9%, to settle at $53.60 per barrel.<\/p>\n\n\n\n
Meanwhile, the West Texas Intermediate (WTI) crude futures for February delivery added $2.31, or nearly 4.9%, to close at $49.93 per barrel, after exceeding earlier in today\u2019s session the $50 mark for the first time since the beginning of the pandemic.<\/p>\n\n\n\n
Moreover, newly-imposed sanctions by the United States provided more support for oil prices.<\/p>\n\n\n\n
Last month OPEC+ increased production by 500,000 barrels per day (b\/d), an increase that was well below the expected 2 million b\/d rise.<\/p>\n\n\n\n
The outlook for the first half (H1) of 2021 is very mixed, according to the Secretary-General of OPEC, Mohammed Sanusi Barkindo, who was quoted by Bloomberg as saying that \u201cthere are still many downside risks to juggle.\u201d<\/p>\n\n\n\n
Two forces are moving the market, which put pressure on the OPEC+ alliance. On one hand, the rollout of vaccines is helping improve the demand outlook, while the new variant and the rising number of cases amid a new wave that prompted renewed lockdown measures are making for a more gloomy outlook.<\/p>\n","protected":false},"excerpt":{"rendered":"
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