Oil prices turn into profitability – OPEC + once again struggles for agreement | 05/01/21


Oil prices rose on Tuesday.

After price losses in early trading, they turned into the profit zone by midday and were able to make up some of the losses at the start of the year. A barrel (159 liters) of the North Sea variety Brent cost 51.72 US dollars last. That was 64 cents more than on Monday. The price of a barrel of the US West Texas Intermediate (WTI) rose 61 cents to $ 48.23.

Investors are waiting for decisions on the production policy of the OPEC oil cartel and its cooperation partners, which are combined in the OPEC + network. Talks have been going on since Monday about the production rates in February. After being unexpectedly interrupted on Monday, negotiations will resume on Tuesday.

Market observers spoke of different positions of the two leading oil powers of OPEC +, Saudi Arabia and Russia. Most recently, Saudi Arabia warned against an early further expansion of oil production, which is supported by Russia. In view of the recent rise in oil prices, OPEC + must resist the temptation to loosen production limits even more, said the Saudi energy minister, Abdulasis bin Salman.

According to Commerzbank raw material experts, the majority of OPEC + countries want to leave production unchanged in February. They pointed out, however, that a unanimous decision could be reached and that Russia insisted on a further increase in production in February. So far, the production volume has been increased by 500,000 barrels per day from January.

“No agreement would be the worst of all solutions,” said Commerzbank’s analysis. Therefore, the experts expect a compromise and an agreement within OPEC + in the course of the day.


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Oil prices turn profitability OPEC struggles agreement


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