Oil prices gain following OPEC+ meeting
- 04 Feb 2021
Gulf Today Report
Oil prices jumped on Thursday after OPEC+ major producers maintained a reduced output policy and US crude stockpiles decline.
Brent crude futures gained 47 cents, or 0.8%, to $58.93 a barrel by 03:17 GMT, while US West Texas Intermediate (WTI) crude futures climbed 49 cents, or 0.9%, to $56.18 a barrel.
Edward Moya, senior market analyst at OANDA said: "crude prices have been rising higher now that OPEC+ has convinced the energy market that they are determined in accelerating market re-balancing without delay."
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OPEC+ increased its oil output policy on Wednesday, an indication that producers are confident about their decision. The supply cut has drained inventories despite the uncertainty of a recovery in demand.
Additionally, US crude oil stockpiles declined by 994,000 barrels last week to 475.7 million barrels.
Moya added that continued progress in rolling out COVID-19 vaccines is also an important driver of oil prices.
