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Oil prices fall as 2021 supply policy debated

by Bunkerist
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Oil prices fell on Monday amid uncertainty over whether OPEC + will agree to extend production cuts, but vaccine hopes still pushed benchmarks crude up more than a fifth in November.

Brent crude for January delivery, a contract that expires on Monday, dropped 69 cents, or 1.4%, to $47.49 a barrel by 1220 GMT. The more actively traded February Brent contract was down 65 cents at $47.60.

West Texas Intermediate (WTI) crude for January fell 53 cents, or 1.2%, to $45.00 a barrel.

OPEC + The optimistic atmosphere last week took a blow after the informal talks failed to reach agreement on supply policy in advance of the official meetings on Monday and Tuesday.

It is difficult to convince some member states with this discipline. In the event of an unexpected supply confusion, it is not only  reflection on prices be damaged, but also the general existence of the OPEC alliance will be questioned.

Fuel demand rebounded in Asia, but not in Europe and America. OPEC + said its allies, including Russia, could consider extending existing cuts by three to four months or gradually increasing production from January.

In a survey of many economists and analysts, Brent is estimated to average $ 49.35 per barrel next year.

Brent and WTI are set to rise by more than 20% in November for the strongest monthly earnings since May, and both are being backed by three promising vaccines in hopes that it can boost economic recovery and fuel demand.

Meanwhile, supporting the demand outlook, China expanded factory activity at the fastest speed in more than three years in November.

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