This will bring the entire production cuts at the start of 2021 to 7.2 million BPD.
Ahead of the meeting, OPEC and its associates, recognized collectively as OPEC+, should have increased the prevailing production cut of 7.7 million BPD through at least March. Talks saw a delay on Tuesday after it became clear they were incapable of settling.
Oil ministers from the 23-member group are the world’s biggest crude producers. They kicked off their conference around 10 a.m. ET, following a several-hour pause.
Rystad Energy senior oil markets analyst Paola Rodriguez Masiu stated that 500,000 BPD from January is not the horror scenario that the market worried about. Still, it is not what was exacted weeks ago. She added that markets are now responding positively, and prices record a small increase as 500,000 extra supplies are not dangerous for balances.
Following the conference, international benchmark Brent crude futures traded 1.4% more high-priced at $48.92 per barrel. In contrast, U.S. West Texas Intermediate futures settled 36 cents, or 0.8%, more above $45.64 per barrel.
Both price records caught a multiday losing streak in the prior session, closing higher on encouraging coronavirus vaccine news. Oil prices settled more than 25% below the year to date.
After days of postponed talks, OPEC+ agreed to the most significant single output cut in history in April. The record cut of 9.7 million barrels per day began on May 1 but was climbed back to 7.7 million in August.