COMMODITY
Crude oil futures end higher as OPEC deepens output cuts
Dec-07-2019

Crude oil futures ended higher on Friday after Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed to deepen oil production cuts in order to prevent oversupply in the market. The new deal agreed upon during the Vienna meet will apply for the first three months of 2020. The move follows the recommendation of the oil exporting countries to deepen the cuts by 500,000 barrels per day to existing 1.2 million barrels per day. The total curb of 1.7 million barrels per day would amount to 1.7% of global crude supply. Saudi Arabia's energy minister Prince Abdulaziz bin Salman said that the kingdom’s quota would be an additional 167,000 barrels per day and that it would continue to exceed its quota by 400,000 barrels a day, thus bringing the overall production cut to closer to 2.1 million barrels a day. Positive comments on the trade deal front and upbeat U.S. jobs data also contributed as well to oil’s sharp rise.

Benchmark crude oil futures for January gained 77 cents or 1.3 percent to settle at $59.20 a barrel on the New York Mercantile Exchange. Moreover, January Brent added $1 or 1.6% percent to settle at $64.39 a barrel on London's Intercontinental Exchange.

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