Oil prices have plummeted as producers, including Saudi Arabia and Russia, keep continuing to negotiate extending the record production cuts which had been agreed with the first wave of COVID-19.
Brent crude was down 15 cents, or 0.3%, at $48.10 a barrel by 0155 GMT, after gaining 1.8% on Wednesday. West Texas Intermediate (WTI) oil was down 17 cents, or 0.4%, at $45.11 a barrel, having ended 1.6% higher the previous session.
Manufacturers, including OPEC and Russia, are still in talks Thursday to agree on their 2021 policies, without yet compromising previous talks on how to deal with weak oil demand during the new coronavirus wave.
OPEC and its allies are expected to continue the oil cuts of 7.7 million barrels a day, at least until March 2021. However, some manufacturers resists after hopes of vaccines to be approved quickly resulted in a rise in oil prices at the end of November.
The UK has embarked on a global race to launch the most important mass vaccination program in history by approving Pfizer Inc’s COVID-19 vaccine on Wednesday.
Crude oil stocks fell in the United States last week, according to a statement released Wednesday. Gasoline and distillate inventories, on the other hand, rose sharply, although refineries slowed production as demand weakened.
Oil stocks fell by 679,000 barrels in the week of November 27, which is less than expected drop of 2.4 million barrels. Gasoline stocks increased by 3.5 million barrels and distillate stocks increased by 3.2 million barrels.
In addition to international supplies, Venezuela’s crude oil exports almost doubled last month, according to data from state-run PDVSA and Refinitiv Eikon.