Global oil prices rise as producers agree on supply compromise
Oil prices rose on Friday, heading for a fifth week of gains, after major producers agreed to continue to restrain production to cope with coronavirus-hit demand but the compromise fell short of expectations.
Brent was up 19 cents, or 0.4 per cent, at $48.89 a barrel by 0102 GMT after gaining around 1 per cent on Thursday. West Texas Intermediate had risen 18 cents, or 0.4 per cent at $45.82 a barrel.
OPEC and Russia on Thursday agreed to ease deep oil output cuts from January by 500,000 barrels per day, failing to come to a compromise on a broader policy for the rest of next year.
“They came up with the ultimate compromise,” said Stephen Innes, chief market strategist at Axi.
OPEC+ will meet once a month to review conditions and monthly increases will not be greater than 500,000 barrels per day (bpd).
“These meetings will bring some volatility to the market and, importantly, stand to make hedging harder for U.S. producers,” Innes said.
