• 2 minutes U.S. Presidential Elections Status - Electoral Votes
  • 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 minutes United States LNG Exports Reach Third Place
  • 3 hours Joe Biden's Presidency
  • 3 hours So Is COVID a Media Hoax or Not?
  • 2 hours Navalny Poisoning Weakens Russo German Relations
  • 5 hours Biden suspends oil and gas drilling on Federal Lands for 60 days for review.
  • 2 hours GENERAL NORMAN SCHWARZKOPF: The Third Tour
  • 5 hours Parler’s New Partner Has Ties to the Russian Government
  • 3 hours The World Economic Forum & Davos - Setting the agenda on fossil fuels, global regulations, etc.
  • 6 hours a In 2020, we produced and delivered half a million cars.
  • 6 hours CIA Death Squads
  • 9 hours An exciting development in EV Aviation: Volocopter
  • 13 hours Rejoining Paris Climate Accord is Devestating
  • 10 hours Did I Miss Something?
  • 11 hours The Debate Starts : Remake Republican Party vs. Third Party
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Rises As Market Awaits OPEC+ Production Decision

In highly volatile trade, oil prices rose early on Monday as ministers of the OPEC+ alliance began their virtual meeting to decide production levels for February.

As of 9:16 a.m. ET on Monday, WTI Crude was up 0.68 percent at $48.90 and Brent Crude was trading up 1.16 percent at $52.43, suggesting that the market believes that the OPEC+ group will not decide to raise production by another 500,000 barrels per day (bpd) from February as Russia and the United Arab Emirates (UAE) are reportedly proposing.

Most of the members of OPEC+ are reportedly favoring delaying another 500,000 bpd increase in collective production from February due to the surging COVID-19 cases and the new lockdowns imposed to fight them, three sources at OPEC+ told Reuters on Monday.

China’s increase in oil demand amid a cold snap and factories turning to diesel power generators in light of electricity shortages are also supporting oil today, according to analysts. 

“The combination of a weaker dollar, heaps of stimulus, rising inflation/lower real yields and hopes for a vaccine-led recovery in global growth” are all playing their parts as commodities continue to attract fresh buying at the start of the year, John Hardy, Head of FX Strategy at Saxo Bank, said on Monday.

“Crude oil trades at a fresh ten-month high with vaccine rollouts off setting virus-related lockdowns, that could worsen during the coming months,” Hardy said.

According to ING strategists Warren Patterson and Wenyu Yao, “Price action today suggests that the market is assuming that OPEC+ keeps the level of cuts unchanged for the upcoming month.”

“We believe that in the current environment, where there are real concerns over the latest waves of Covid-19, the best route for OPEC+ to take is to keep output cuts unchanged at current levels. Despite the strength in the flat price and spreads, the market is still clearly vulnerable, and adding further supply risks a pullback in prices,” ING said.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on January 04 2021 said:
    While Russia might be keen to add another 500,000 b/d to the global oil market in February, OPEC+ is very well advised to delay this step in view of the tightening global lockdown.

    OPEC+ members will have another chance to increase production in March by 500,000 barrels a day (b/d) to even 1.0 million barrels a day (mbd) in March if the lockdown starts to ease as a result of the global vaccination campaign.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News