Oil edges up after OPEC+ agrees on output cut deal

NEW YORK (Reuters) by Scott DiSavino – Oil prices edged up on Thursday after sources said OPEC and Russia agreed to a modest output increase from January by 500,000 barrels per day but failed to find a compromise on a broader and longer term policy for the rest of next year. The increase means the Organization of the Petroleum Exporting Countries (OPEC) and Russia, a group known as OPEC+, would move to cutting production by 7.2 million bpd, or 7% of global demand from January, compared with current cuts of 7.7 million bpd. Brent was trading 39 cents, or 0.8%, higher at $48.64 a barrel by 12:22 p.m. EST (1722 GMT), while U.S. West Texas Intermediate (WTI) crude rose 29 cents, or 0.6%, to $45.57. “OPEC+ at all costs needed to avoid a taper tantrum, so a small hike in January was acceptable for the Saudis,” said Edward Moya, senior market analyst at OANDA in New York. “With U.S. oil output on the rise, OPEC+ couldn’t allow the Americans to win market share at their expense,” Moya added. U.S. producers boosted output last week for a third week in a row for the first time since June 2019, reaching 11.1… continue reading

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