Oil prices decline as OPEC+ is yet to agree on Feb output
- 05 Jan 2021
Gulf Today Report
Oil fell on Tuesday as OPEC+ are yet to decide on February output and investors are worried about fuel demand due to new COVID-19 lockdowns.
Brent crude futures for March fell 12 cents, or 0.2%, to $50.97 a barrel while US West Texas Intermediate crude for February was at $47.56 a barrel, down 6 cents, or 0.1%.
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Major producers have been unable to agree on oil output. Saudi Arabia is against pumping more due to new lockdowns. On the other hand, Russia is for higher production, citing recovery demand.
OPEC+ will reconvene on Tuesday.
"OPEC+ drama is, of course, steering the latest oil price downgrade, but the heavier hand is likely the still unknown impact of the new strain on economic activity and travel - both factors that warrant a belated mini-price correction after the winter holidays," said Louise Dickson, oil markets analyst at Rystad Energy.
