Oil prices rise after the OPEC + meeting postponed

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Oil prices rose on Tuesday, as they compensated in early European trading with losses they incurred earlier, at a time when all eyes were on the talks.


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OPEC and its allies, who postponed a formal meeting to decide whether to increase production from next month.
Brent crude rose 31 cents to 48.19 dollars a barrel by 0847 GMT, and US West Texas Intermediate crude rose 28 cents to 45.62 dollars a barrel.
The two benchmarks rose nearly 27 percent in November after developments in a Covid-19 vaccine raised hopes for an economic recovery that could revive fuel demand.
OPEC + postponed talks on production policy for next year until Thursday, three sources told Reuters, as no major players reached a consensus.
The group, which includes the Organization of the Petroleum Exporting Countries (OPEC), Russia and other allies, was due to hold its meeting on Tuesday.
“The group needs to extend the agreement in order to ensure that the market continues to withdraw stocks during the first quarter of next year,” ING Economics said in a note.
“Vaccine developments are unlikely to significantly alter demand forecasts in the next two months,” she added.
The group was scheduled to ease production cuts of two million barrels per day from January, but as demand continues to come under pressure from the pandemic, sources say OPEC + is considering extending the existing cuts to the first months of next year, a position supported by Saudi Arabia, the largest producer in OPEC. .
“The group will likely reach a face-saving compromise, with the most likely outcome being a short extension followed by a gradual return to production,” said Helima Croft of RBC.
A Reuters poll of 40 economists and analysts expected the average price of Brent crude to reach $ 49.35 a barrel next year.

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