Oil traded higher on Monday after reports that OPEC and its allies (OPEC +) could re-evaluate their plans for gradual output growth if the US and other countries release quantities from their strategies. inventories.
New York’s main contract, light sweet crude for delivery in January, gained 81 cents, or 1.1%, to close at $ 76.75 a barrel on the New York Mercantile Exchange.
January Brent also strengthened 81 cents or 1% to $ 79.70 a barrel on ICE Futures.
Both contracts recorded big losses last week, completing four consecutive weeks of losses to end at a seven-week low.
According to a Bloomberg report, US President Joe Biden may announce this week the release of quantities of oil from US strategic reserves, in an effort to curb the price rally.
Bloomberg, citing comments from OPEC + representatives, said it was not yet clear whether OPEC + would continue to make even small increases in production if strategic stocks were released.
OPEC + proceeds with monthly increases of its production by 400,000 barrels per day, while it is expected to meet again on December 2.
Meanwhile, concerns about resumption of demand in the coming months are rekindled amid a new European coronavirus outbreak that has forced Austria to launch a new lockdown and tighten restrictions in Germany, the Netherlands and Belgium, among others.
These concerns came to the fore today after Angela Merkel warned that the situation in the country is “dramatic” and “worse than ever”.
.
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
