Reuters was ahead of the competition reporting that the Organization of the Petroleum Exporting Countries and Russian-led allies, a group known as OPEC+, agreed to increase crude output by 500,000 barrels per day (bpd) from January. The group has made record cuts this year but with prices rising and positive news about vaccines, some producers argued it was time to reduce those cuts. The increase in output effectively reduces the group’s supply cuts to 7.2 million bpd from 7.7 million bpd – still 7% of global demand. Ahead of the meeting, investors had widely expected the group to maintain curbs until March, rather than loosen them.
Reuters ahead in reporting OPEC+ to increase output from January; market reacts
News of the agreement helped oil prices rally to their highest since early March, before lockdowns imposed by COVID-19 caused global oil markets to collapse.