Oil Surges as OPEC+ Pledges to Clear Pandemic-Driven Surplus
Bloomberg 2/3/2021 Andres Guerra Luz
(Bloomberg) Oil climbed to the highest in more than a year in New York as OPEC and its allies pledged to continue whittling down global inventories.
Futures in New York surged 1.7% to near $56 a barrel on Wednesday. A committee of OPEC+ ministers said the group will keep pushing to quickly clear the oil surplus left by the pandemic-induced demand slump. The alliance’s effort appears to be working despite a still tenuous recovery in demand: Chinese stockpiles are at the lowest in almost a year and a U.S. government report on Wednesday showed crude stockpiles fell nearly 1 million barrels.
Oil climbed to the highest in more than a year in New York as OPEC and its allies pledged to continue whittling down global inventories.
(Bloomberg) Oil climbed to the highest in more than a year in New York as OPEC and its allies pledged to continue whittling down global inventories.
Futures in New York surged 1.7% to near $56 a barrel on Wednesday. A committee of OPEC+ ministers said the group will keep pushing to quickly clear the oil surplus left by the pandemic-induced demand slump. The alliance’s effort appears to be working despite a still tenuous recovery in demand: Chinese stockpiles are at the lowest in almost a year and a U.S. government report on Wednesday showed crude stockpiles fell nearly 1 million barrels.
Oil Surges as OPEC+ Pledges to Clear Pandemic-Driven Surplus
Bloomberg 2/3/2021 Andres Guerra Luz
(Bloomberg) Oil climbed to the highest in more than a year in New York as OPEC and its allies pledged to continue whittling down global inventories.
Futures in New York surged 1.7% to near $56 a barrel on Wednesday. A committee of OPEC+ ministers said the group will keep pushing to quickly clear the oil surplus left by the pandemic-induced demand slump. The alliance’s effort appears to be working despite a still tenuous recovery in demand: Chinese stockpiles are at the lowest in almost a year and a U.S. government report on Wednesday showed crude stockpiles fell nearly 1 million barrels.
Markets have since stabilised. Riding the wave of a commodity supercycle , Brent the international benchmark for oil and WTI have each surged 10 per cent since the beginning of 2021. Oil s gains, propelled by recovery in Asia, a softer dollar and vaccination programmes in developed economies, have also been aided by the group s proactiveness.
At the start of the year, Opec linchpin Saudi Arabia, unilaterally decided to implement a 1 million barrel a day cut until March. The oil bloc shelved an earlier plan to bring 2m bpd back to the market and is drawing back 7.2m bpd from the market for three months from January, equivalent to about 7 per cent of global supplies.