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Commodity News |
HeadLine : |
Oil prices slip after OPEC, allies agree to loosen oil supply curbs |
Date : |
Jul 16 2020 |
Oil prices slid on Thursday after OPEC and allies such as Russia agreed to ease record supply curbs from August, though the drop was cushioned by hopes for a swift U.S. demand pick-up after a bigger-than-expected drawdown from the country’s crude stocks. Brent crude LCOc1 fell 13 cents, or 0.3%, at $43.66 a barrel, and U.S. West Texas Intermediate (WTI) crude CLc1 dropped 18 cents, or 0.4%, to $41.02 a barrel. They rose 2% the previous day, helped by the U.S. crude inventories drop. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, agreed on Wednesday to scale back oil production cuts from August as the global economy slowly recovers from the coronavirus pandemic. OPEC+ has been cutting output since May by 9.7 million barrels per day, or 10% of global supply, but from August, cuts will officially taper to 7.7 million bpd until December. Despite the official OPEC+ accord, Saudi Arabian Energy Minister Prince Abdulaziz bin Salman said production cuts in August and September would end up amounting to about 8.1 million-8.3 million bpd, more than the headline number. That’s because countries in the grouping which over-produced earlier this year would compensate by making extra August-September cuts, the minister said. Source : Reuters
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